CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2021
(March 1, 2020 to August 31, 2020)
October 12, 2020
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Saishi Kimura, Chairman and Representative Director, CEO
Masahiko Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 13, 2020
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for analysts and institutional investors)
Dividend payment commencement date (planned): November 13, 2020
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2020
(March 1, 2020 to August 31, 2020)(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％(52.5)

1,283(45.8)

603(59.4)

21,925
(0.8)
2,195
10.1
FY2020 First Half: 1,375 million yen (51.7%)
FY2019 First Half: 906 million yen (-37.9%)

2,370

(8.0)

1,484

(18.3)

Millions of yen

FY2020 First Half
FY2019 First Half

17,980Note: Comprehensive income

Millions of yen(18.0)Net Income
per Share

FY2020 First Half
FY2019 First Half

1,043

Net Income per
Share after Dilution
Yen

Yen

27.79

—

66.10
66.10
(Reference) Operating income before the amortization of goodwill:
FY 2020 First Half: ¥1,291 million
FY 2019 First Half: ¥2,443 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.

(2) Consolidated Financial Position
Total Assets
Millions of yen

August 31, 2020
February 29, 2020

Net Assets to Total
AssetsNet Assets
Millions of yen

53,626

40,136

Net Assets per Share

%

Yen

74.8

1,846.76

53,73739,58873.5(Reference)Shareholders’ equity: August 31, 2020: 40,112 million yen
February 29, 2020: 39,514 million yen

1,822.10

2. Dividends
Dividends per Share
(Record Date)

End of 1Q

End of 2Q
Yen

End of 3Q
Yen

AnnualYear-end
Yen

Yen

Fiscal 2019
—
40.00
—
40.00
Fiscal 2020—
40.50
Fiscal 2020—
40.50
(Forecast)
Note: Revision to dividend forecast for the second quarter of the fiscal year ending February 28, 2021: No

-1-

Yen

80.00
81.00

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2021
(March 1, 2020 to February 28, 2021)(% 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%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Fiscal year
ending39,000(13.3)
2,900 (27.1)
3,300 (23.5)
2,000 (19.2)
92.15
February 28,
2021
Note: Revisions to consolidated operating forecasts for the second quarter of the fiscal year ending February 28, 2021: No(Reference) EPS before the amortization of goodwill, taking into account the upper limit for share buy-backs in FY 2019, is¥115.03.

Notes(1) Changes in Important Subsidiaries during the Period:(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: Yes(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: No
2) Changes of accounting principles other than 1) above: Yes
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 the period-end:
August 31, 2020: 24,331,356 sharesFeb. 29, 2020: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2020: 2,611,109 sharesFeb. 29, 2020: 2,645,286 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2020 First Half: 21,703,709 shares
FY2019 First Half: 22,455,182 shares
Note: The number of recorded treasury stock includes 41,000 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust (hereinafter referred to the “the Trust”) and
67,136 of the Company’ shares held by the Shares Grant Trust for Officers as of the end of the second quarterof the fiscal year.

The financial statement summary is not subject to auditing by certified public accountants or audit firms.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
1. 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 ofcurrently 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, pleaserefer to “1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated
Results Forecasts and Other Future Predictions” on page 5.
2.

The Company plans to hold a financial results briefing on October 12, 2020 (Monday) for institutional
investors and analysts. Presentation materials used that day will be posted to the Company’s website
promptly after the briefing.

-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

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 Second Quarter Cumulative

8

Consolidated Quarterly Statements of Comprehensive Income Second Quarter Cumulative

9(3)

Consolidated Quarterly Statements of Cash Flows

10

(4)

Notes to Consolidated Quarterly Financial Statements

12(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial

12Statements)(Changes in Accounting Policy)

12(Additional Information)

12(Segment Information)

14(Important Subsequent Events)

15

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first half of the period under review (March 1, 2020 to August 31, 2020) of fiscal 2020, thefiscal year ending February 28, 2021 (March 1, 2020 to February 28, 2021), conditions in the Japanese
economy were extremely severe, with a slump in business results and a drop in personal consumption
amid the restrictions placed on economic activity due to the COVID-19 emergency.
In the retail industry, in addition to the impact of the government’s call for people to remain at home,
as well as business suspensions and shortened operating hours at stores, the worsening employment andincome environments that continued to emerge after the end of the state of emergency led to fears of afurther cooling off in consumer sentiment. Therefore, the outlook for the economy remained extremely
severe and clouded.
Under these circumstances, during fiscal 2020, the second year of the fifth medium-term management
plan, the YONDOSHI HOLDINGS Group continued to cultivate human resources, bolster productcapabilities, and assess market trends, with the aim of becoming a century-old company and brand.
Further, we practiced CSR-based management to establish a highly trusted corporate group, and worked
to enhance enterprise value by strengthening internal controls, providing shareholder returns, and making
medium to long-term investments linked to earnings growth.
As a result, for the first half of the period under review, net sales amounted to ¥17,980 million (down
18.0% from the same period of the previous fiscal year), operating income amounted to ¥1,043 million(down 52.5%), ordinary income amounted to ¥1,283 million (down 45.8%), and profit attributable toowners of parent amounted to ¥603 million (down 59.4%). Positioned as an important management
indicator, operating income before the amortization of goodwill amounted to ¥1,291 million (down
47.1%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group fully implemented measures to help prevent the spread of COVID-19,
including suspending business operations and shortening operating hours at stores from March. Although
the government continued to call for people to remain at home even after the end of the state of emergency,
net sales from stores underwent a recovery as the Group transitioned to regular operations in stages.
As a result, net sales in the Jewelry Business segment amounted to ¥8,534 million (down 32.6% fromthe same period of the previous fiscal year), with operating income of ¥686 million (down 62.2%).
Apparel Business
The AS’TY Group made efforts to maintain the supply chain by increasing the number of local staff atoverseas production sites. The Group also improved operating income over the same period of theprevious fiscal year by focusing on cost reductions. Retailer age Co., Ltd. focused on business operations
for the mainstay everyday fashion brand PALETTE to fulfill its role as part of the social infrastructure
supporting the lives of local customers. Due to these efforts, existing stores underwent substantial growth
while stores that were newly opened in line with the current medium-term management plan also trended
positively, leading both net sales and operating income to achieve their highest levels in history.
As a result, net sales in the Apparel Business segment amounted to ¥9,445 million (up 2.1% from thesame period of the previous fiscal year), with operating income of ¥567 million (up 15.8%).
(2) Explanation of Financial Condition
Assets, Liabilities and Net Assets
Total assets at the end of the second quarter (August 31, 2020) of the fiscal year ending February 28, 2021
amounted to ¥53,626, a decrease of ¥110 million from the end of the previous fiscal year (February 29,2020). This was mainly due to a decrease of ¥558 million in merchandise and finished goods. Total
liabilities amounted to ¥13,490 million, a decrease of ¥658 million from the end of the previous fiscal
year. This was mainly due to a decline of ¥1,300 million in notes and accounts payable — trade. Total net
assets amounted to ¥40,136 million, an increase of ¥548 million from the end of the previous fiscal year.
This was mainly due to an increase of ¥755 million in the valuation difference on available-for-salesecurities.

-4-

Cash Flows
Cash and cash equivalents as of the end of the second quarter of the fiscal year under review stood at¥1,555 million, an increase of ¥769 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥2,813 million, up ¥2,407 million compared withthe corresponding period of the previous fiscal year. This increase was mainly due to income before
income taxes and an income tax refund.
(Cash Flows from Investing Activities)
Net cash used by investing activities totaled ¥1,815 million, a decrease of ¥1,838 million compared withthe corresponding period of the previous fiscal year. This decrease was mainly due to cash outflows
attributable to purchases of investment securities.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥227 million, down ¥3,412 million compared with thecorresponding period of the previous fiscal year. This decline was mainly due to outflows attributable todividend payments.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Regarding consolidated results forecasts for fiscal 2020 (ending February 28, 2021), although the
COVID-19 situation is not worsening, and restrictions on domestic and international travel are gradually
being relaxed, the Company’s forecasts assume that the impact of the pandemic will continue during the
subject period.
Of note, because the timing of return to normal activity following COVID-19 remains uncertain, thefuture status of the pandemic and extent to which it is controlled could have a significant impact on
consolidated earnings.

-5-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

End of the Second Quarter of
the Fiscal Year Ending
February 28, 2021
(As of August 31, 2020)

785
2,975
8,356
469
1,262
3,128
(2)

2,055
2,995
7,797
550
1,237
684
(3)

16,97615,317

5,307
5,492
698

5,211
5,492
619

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Other current assets
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Other, net

11,498

11,323

Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

3,227
214

2,979
230

Total intangible assets

3,441

3,209

Investments and other assets:
Investment securities
Net defined benefit asset
Other
Allowance for doubtful accounts

16,507
582
4,782
(51)

18,544
601
4,686
(55)

Total investments and other assets

21,82023,77636,76038,30953,73753,626

Total noncurrent assets
Total assets

-6-

５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 29, 2020
(As of February 29, 2020)

End of the Second Quarter of
the Fiscal Year Ending
February 28, 2021
(As of August 31, 2020)

3,902

―

2,601
800

82
434
227
24
70
3,109

439
205
26
36
2,724

7,851

6,834

79

91

500
1,358
4,358

496
1,375
4,692

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other
Total current liabilities
Noncurrent liabilities:
Provision for share-based remuneration for directors (andother officers)
Retirement benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities

―

6,297

6,655

Total liabilities

14,14913,490

NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock

2,486
7,223
32,108(5,751)

2,486
7,208
31,841(5,644)36,06635,891Other accumulated comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans

Total shareholders’ equity

3,594
2
(161)
56
(43)

4,349
(5)
(161)
78
(40)

Total other accumulated comprehensive income

3,447

4,220

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

-7-

74

24

39,58840,13653,73753,626

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 29, 2020
(March 1, 2019 toAugust 31, 2019)

First Half of the
Fiscal Year Ending
February 28, 2021
(March 1, 2020 toAugust 31, 2020)

Net sales
Cost of Sales

21,925
9,517

17,9808,505

Gross profit

12,408

9,474

Selling, general and administrative expenses

10,213

8,431

Operating income

2,195

1,043

Other

23
92
36
46

86
92
36
42

Total non-operating income

199

258

0
2
0
6
7

1
2
0
6

Non-operating income
Interest income
Dividends received
Rent of real estate for investment

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Foreign exchange losses
Commission for purchase of treasury shares
Provision of allowance for doubtful accounts
Loss on cancellation of insurance policies
Other

―
―
5

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Reversal of loss on liquidation of subsidiaries
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Allowance for absence from work
Loss on liquidation of subsidiaries
Loss on liquidation of brands
Loss on valuation of investment securities

―
2
4
0

24

17

2,370

1,283

99

―
―
―

22
52
394
27

99

497

86
16

106
27
405
6
121
63

―
―
―
159

Total extraordinary losses

262

730

Net income before income taxes

2,208

1,050

Total income taxes

724

447

Net income

1,484

603

Profit attributable to owners of parent

1,484

603

-8-

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 29, 2020
(March 1, 2019 toAugust 31, 2019)
Income before minority interests
Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent-9-First Half of the
Fiscal Year Ending
February 28, 2021
(March 1, 2020 toAugust 31, 2020)
1,484

603

(573)
(8)
5
(1)

755
(8)
21
3

(577)
906

772
1,375

906

1,375

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)First Half of the
Fiscal Year Ended
February 29, 2020
(March 1, 2019 toAugust 31, 2019)
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Allowance for absence from work
Increase (decrease) in net defined benefit liability
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Loss (gain) on sales of investment securities
Increase (decrease) in accounts payable―other
Increase (decrease) in advances received
Increase (decrease) in accounts payable ― other
Decrease (increase) in other assets
Increase (decrease) in other liabilities

First Half of the
Fiscal Year Ending
February 28, 2021
(March 1, 2020 toAugust 31, 2020)

2,208
477
86
248
(47)
(0)

(32)
42
(116)
0
12
159

1,050
483
106
248
5
(21)
(52)
(394)
405
(18)
14
(179)
1
8
63

(816)

(24)

67

501

32

(1,300)

(99)
86
(118)
397
(536)
164

(22)
239
(160)
(318)
75
(126)

2,215

584

116
(0)

(4,787)
2,861

173
(1)
394
(405)
(642)
2,709

405

2,813

―
―
―

SubtotalInterest and dividends income received
Interest expenses paid
Subsidies for employment adjustment received
Allowance for absence from work paid
Income taxes paid
Income taxes refund――

Net cash provided by (used in) operating activities- 10 -

(Millions of yen)First Half of the
Fiscal Year Ended
February 29, 2020
(March 1, 2019 toAugust 31, 2019)
Cash flows from investing activities:
Payments into time deposits
Purchase of noncurrent assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of long-term loans receivableCollection of long-term loans receivable
Purchase of long-term prepaid expenses
Other payments
Other proceeds

First Half of the
Fiscal Year Ending
February 28, 2021
(March 1, 2020 toAugust 31, 2020)

―

1
(29)
(89)
183

(500)
(367)
(54)
(1,006)
88
(0)
0
(13)
(95)
133

(345)
(36)
(6)
345

―

Net cash provided by (used in) investing activities

23(1,815)

Cash flows from financing activities:
Net increase (decrease) in short-term loans payable
Repayment of long-term loans payable
Purchase of treasury stock
Proceeds from sales of treasury stock
Cash dividends paid
Other, net

400
(52)
(3,103)
33
(870)
(48)

800
(82)
(50)
14
(870)
(38)

Net cash provided by (used in) financing activities(3,640)

(227)

(2)

(1)

Net increase (decrease) in cash and cash equivalents(3,214)769

Cash and cash equivalents at beginning of period

3,749

785

535

1,555

Effect of exchange rate changes on cash and cash equivalents

Cash and cash equivalents at end of period- 11 -

(4) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Application of Special Accounting Treatment in the Preparation of the Consolidated Financial
Statements)(Calculation of Tax Expense)
Tax expense has been calculated by rationally estimating the effective tax rate after the application oftax effect accounting for profit before income taxes in the consolidated fiscal year, including the subject
second quarter period, and multiplying this estimated effective tax rate by profit before income taxes.
(Changes in Accounting Policy)(Change in Calculation Method for Tax Expense)
Up to now, the Company and its consolidated subsidiaries have calculated tax expense using principal
methods. However, following the organizational changes to strengthen management functions andenhance operational efficiency, in order to further enhance the efficiency of account settlement for theCompany and its consolidated subsidiaries, from the subject fiscal year the Company is switching to amethod of rationally estimating the effective tax rate after the application of tax effect accounting forprofit before income taxes, and multiplying this estimated effective tax rate by profit before income
taxes.
Of note, the impact of this change is negligible, and so has not been applied retroactively.
(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. During the second quarter ofthe subject consolidated fiscal year, however, the Trust completed the sale of shares in the Company
held by The Nomura Trust and Banking Co., Ltd. With the expiration of the trust period on July 2, 2020,
this transaction came to a conclusion.
i. Transaction summary
The Company established a trust with the beneficiaries as employees who participate in the YONDOSHIHOLDINGS Employees’ Shareholding Association (“the Shareholding Association”) and satisfy
certain requirements. The trust acquires Company stock in an amount expected to be procured by 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 to their 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 will discharge 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). The book value and number of shares of such treasury stock is
not applicable due to the completion of sale of all remaining shares in the Trust during the second quarterof the subject consolidated fiscal year.
iii. Book value of debt recorded through application of the gross method
Not applicable due to the completion of repayment during the second quarter of the subject consolidated
fiscal year.
(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (excluding- 12 -

directors who are audit and supervisory committee members) and directors who are audit andsupervisory committee members (excluding outside directors), as well as directors and corporate
auditors (excluding outside corporate auditors) of the Company’s major group companies from
November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible
companies in accordance with rules for granting trust-based stock compensation to corporate officers as
determined by the eligible companies. The Company will contribute funds to the trust, and the trust will
use these funds to acquire the Company’s shares, and grant them to eligible directors. In principle,
directors and other officers will receive the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at theirbook value in the Trust (excluding the amount of ancillary expenses). The book value and number ofshares of such treasury stock was ¥114 million, for 45,353 shares at the end of the previous consolidated
fiscal year, and ¥144 million, for 67,136 shares at the end of the second quarter of the subject
consolidated fiscal year.
(Accounting Estimates)
In light of the heightened awareness of the need to prevent the spread of COVID-19, even as of the dateof this document, the Company expects the current trend of refraining from going out in public tocontinue, and recognizes that this will have a certain degree of impact on demand. Based on theassumption that the situation will gradually improve over the course of the subject fiscal year, theCompany has estimated impairment for its fixed assets.
Of note, these assumptions have a high degree of uncertainty, and should a return to normal
lifestyles be delayed and the impact prolonged, there is a possibility of future losses.

- 13 -

(Segment Information)
Ⅰ The first half of the fiscal year ended February 29, 2020 (March 1, 2019 to August 31, 2019)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

12,671

9,254

21,925―21,925

―

327

327

(327)

―

Total

12,671

9,581

22,253(327)

21,925

Segment income

1,815

490

2,305

(110)

2,195

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥110 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥274 million and elimination of inter-segment transactions of ¥412 million. 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(Major Impairment Loss Relating to Fixed Assets)
An impairment loss relating to fixed assets was posted in the Jewelry Business segment. The posted value of this
impairment loss during the second quarter of the fiscal year under review was ¥110 million.

Ⅱ The first half of the fiscal year ending February 28, 2021 (March 1, 2020 to August 31, 2020)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

8,534

9,445

17,980―17,980

―

111

111

(111)

―

Total

8,534

9,557

18,092(111)

17,980

Segment income

686

567

1,254

(210)

1,043

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥210 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥301 million and elimination of inter-segment transactions of ¥339 million. 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.

- 14 -(Important Subsequent Events)
Not applicable- 15 -