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

Investors’ Presentation
Results for the First Half of Fiscal 2021
(The Fiscal Year Ending February 28, 2022)
October 8, 2021

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2021,
the Fiscal Year Ending February 28, 2022
Ⅱ. Measure for the Second Half of Fiscal 2021 andBusiness Results Forecasts for the Full Fiscal year
Ⅲ. Medium-Term Strategic Approach

Saishi Kimura. Chairman and Representative Director・CEO
Hidetoshi Masuda, 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.

2Contents
Ⅰ．Overview and Summary of the First Half of Fiscal 2021,
the Fiscal Year Ending February 28, 2022

Ⅱ．Measure for the Second Half of Fiscal 2021 andBusiness Results Forecasts for the Full Fiscal year

Ⅲ．Medium-Term Strategic Approach

First Half of Fiscal 2021: Impact of COVID-19
Further spread of the COVID-19 pandemic after theannouncement of revised business results forecasts on July 7
 The number of infections in the Tokyo Metropolitan area reached four digits onconsecutive days from July 14
Temporary substantial downturn in consumer sentiment due to the prolonged
declaration of a state of emergency
 Conditions in the Jewelry Business were harsher than in the corresponding
period of the previous year due to the prolonged declaration of a state of
emergency and the incidence of infection clusters at large-scale commercial
facilities Continued robust trends in the Apparel Business; in addition to the opening of
six PALETTE brand stores, which exceeded plans, results were also strong at
existing stores reaching 102.4% year on year4Overview of Consolidated Operating Results for
the First Half of Fiscal 2021
 While the state of emergency lasted longer than expected at the timerevised business results were announced on July 7, net sales were
essentially in line with revised plans and profits were steadily secured
1H FY2020 (2020/8)(Millions of yen, %)ActualResults(%)

1H FY2021 (2021/8)
Jul. 7 Revised
Forecasts（％）

ActualResults(%)

YoY

Jul. 7 Revised
Forecasts

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

17,980100.0

18,000100.0

17,769

100.0

－1.2

－1.3

Gross profit

9,474

52.7

9,400

52.2

9,222

51.9

－2.7

－2.7

Gross profit margin

52.7

－0.8

＋0.5

Selling, general andadministrative expenses

8,431

46.9

8,900

49.4

8,825

49.7

＋4.7

＋0.9

248

1.4

248

1.4

248

1.4

±0

±0

Operating income

1,043

5.8

500

2.8

396

2.2

－62.0

－20.8

Ordinary income

1,283

7.1

800

4.4

715

4.0

－44.3

－10.6

603

3.4

300

1.7

280

1.6

－53.6

－0.7

1,291

7.2

748

4.2

644

3.6

－50.1

－3.9

851

4.7

548

3.0

528

3.0

－38.0

－0.4

Amortization of goodwill

Net income
Operating income before
the amortization of goodwill
Net income before theamortization of goodwill

51.9

52.2

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

5Overview of Business Results by Segment― The Jewelry Business Unexpected declaration of a fourth state of emergency at the time revised
business results forecasts were announced on July 7
 Generated profits despite a harsh operating environment and thecontinued spread of the COVID-19 pandemic
1H FY2020 (2020/8)

1H FY2021 (2021/8)

YoY

Jul. 7
Revised
Forecasts

Increase(Decrease) (%)

Increase(Decrease) (%)(Millions ofyen, %)

ActualResults(%)

Jul. 7
Revised
Forecasts（％）

ActualResults(%)

Net sales

8,534

100.0

8,000

100.0

7,894

100.0

－7.5

－0.1

Operatingincome

686

8.0

130

1.6

60

0.8

－91.3

－53.8

6

Overview of Business Results by Segment― The Apparel Business Increase in revenue in the Apparel Business; trends in excess of plans Opened six new PALETTE brand stores; trends also robust at existing stores;
reported record highs in net sales and operating income
 Despite encountering difficulties, expanded transactions of infant and children’s
products in the Apparel Manufacturing Business owing to favorable recognition of
product planning capabilities
1H FY2020 (2020/8)

1H FY2021 (2021/8)

YoY

Jul. 7
Revised
Forecasts

Increase(Decrease) (%)

Increase(Decrease) (%)(Millions ofyen, %)
ActualResults(%)

Jul. 7
Revised
Forecasts（％）

ActualResults(%)

Net sales

9,445

100.0

10,000

100.0

9,875

100.0

＋4.6

－1.3

Operatingincome

567

6.0

530

5.3

547

5.5

－3.5

＋3.2
7

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net worth stood at ¥51.6 billion, ¥12.2 billion, and ¥39.4 billion,
respectively
 Cash flows from operating activities: Decrease in net cash provided by operating activities
owing to the absence of the income tax refund of ¥2.7 billion posted in the corresponding
period of the previous fiscal year Cash flows from financing activities: Cash dividends paid of around ¥0.9 billion as a part ofshareholder returns
 Continued stable management on the back of the Company’s solid financial standing
Financial Position

Cash
Cash Flows
Flows
As of August 31, 2021

Total liabilities¥12.2 billion

Total assets¥39.4 billion

Total net assets¥51.6 billion(Millions of yen)

1H FY2020(2020/8)

1H FY2021(2021/8)

Increase(Decrease)

Operating cash
flows

2,813

14

(2,799)Investingcash flows(1,815)173+1,988Financing cash
flows

(227)

(899)

(672)

Free
cash flows

+998

+187

(810)
8

Status and Plan of Store Openings and Closures
 Jewelry Business: One new store opened in the first half Apparel Business: Six new PALETTE brand stores opened in the first half
exceeding plans
ApparelBusiness

Jewelry Business
Japan
Roadsidebutique

FY2020(2021/2)

FY2021
1H Actual
Results(2021/8)

FY2021 2H
Plan(2022/2)

Total

Department
store

Bridal Shop

PALETTE

Fashion
Building

Total

Fiscalyear-end

3

71

40

61

175

80

255

Storesopened

0

0

0

1

1

6

7

Storesclosed

0

0

0

1

1

1

2

2H-end

3

71

40

61

175

85

260

Storesopened

0

0

0

0

0

4

4

Storesclosed

0

0

0

3

3

1

4

Fiscalyear-end

3

71

40

58

172

88

260
9

Status and Plan of the Number of Domestic
Brand Stores in the Jewelry Business

4ºC
BRIDAL

4ºC
FY2020(2021/2)

FY2021
1H Actual Results(2021/8)

FY2021 2H Plan
(2021/2)EAU DOUCE
4ºC

Canal4ºC

Total

Fiscal yearend

84

40

45

14

183

Stores opened

0

0

1

0

1

Stores closed

0

0

1

0

1

2H-end

84

40

45

14

183

Stores opened

0

0

0

0

0

Stores closed

1

0

2

0

3

Fiscal year-end

83

40

43

14

180

* Composite stores that handle multiple brands are recorded as a single store by each individual brand10

Contents
Ⅰ．Overview and Summary of the First Half of Fiscal 2021,
the Fiscal Year Ending February 28, 2022

Ⅱ．Measure for the Second Half of Fiscal 2021 andBusiness Results Forecasts for the Full Fiscal year

Ⅲ．Medium-Term Strategic Approach

Operating Environment Forecasts for the Second Half
Expectations for a recovery in economic activity and a positive correction in consumption

 The government is looking to normalize socioeconomic activities throughvarious initiatives including vaccination certification
 Expectations for a modest recovery in economic activity and positive
correction in consumption in the mainstay Jewelry Business in light of theChristmas shopping season, the period of greatest demand, and expansionof vaccinations
 PALETTE trends also expected to remain firm in the second half

Revised full fiscal year forecasts announced on July 7
remain unchanged
12

Operating Environment Forecasts for the Second Half
Operating conditions in the Jewelry Business gradually deteriorated toward
the end of the fiscal year due to the spread of COVID-19 in the second half ofthe previous period, the fiscal year ended February 28, 2021

Looking at the fiscal year under review, the fiscal year ending February
28, 2022, the Jewelry Business is expected to recover from December
owing to an improvement in the operating environment

13

Operating Environment Forecasts for the Second Half
Implementation of sales measures projected to have a positive effect in 4Q,
including the peak-demand Christmas period in the Jewelry Business Expand the rollout of new collections (130% YoY) Approach 420,000 member customers
 Strengthen sales promotions (advertising and sales promotion
expenses 160% YoY)

Confident of achieving full fiscal year targets on the back ofimprovements in the operating environment, vigorous
implementation of measures, and expectation of a positive
correction in consumption
14

Measures for the Second Half of Fiscal 2021
Jewelry Business(1) 4ºC fashion jewelry products:
Expand the Christmas collection lineup and strengthen promotional activities(2) 4ºC BRIDAL specialty stores:
Ongoing measures to improve the ability to attract customers(3) Canal 4ºC:
Further expand female customers(4) e-commerce channels:
Cultivate new markets through further growth and the development of new brands andzone items(5) Customer management system:
Improve the ability to attract customers through the use of the customer management
systemApparel Business(1) Everyday fashion business PALETTE:Open 10 new stores for the full fiscal year through the opening of 4 stores in the second
half; promote the success of the 25th anniversary project(2) Apparel Manufacturing Business:
Increase uniform volume by leveraging production in Bangladesh

15Jewelry Business

4ºC Fashion Jewelry Product Christmas Season Measures
 Express the happiness and joy of Christmas; expand support among women Capture gift demand by expanding the rollout of Christmas collection products
 Stimulate early demand through advance reservation and early purchase benefits Strengthen advertising and promotion measures Convey the excitement of Christmas and high quality of the brand through asophisticated image

4ºC limited edition Christmas items 16

Jewelry Business

Improve the Ability to Attract 4ºC BRIDAL
Specialty Store Customers
 Improve the brand image; expand the placement of ZEXY and SNS
advertisements
 Distinguish from other brands by expanding traceability measures17

Jewelry Business

Further Canal 4ºC Female Customers
 Rollout a wide array of items including ear cuffs and bracelets
 Grow the female customer base by expanding ear-related items

Canal 4ºC ear-related items

18

Jewelry Business

Expand e-commerce Channels
 Further expand e-commerce sales, a growth channel
 Open three new e-commerce malls
 Renew the Company’s e-commerce site; improve customer convenience and site
operations
 Cultivate new markets through the development of new brands and zone items
e-commerce Sales(Millions of yen)

2,040
2,000

1,583

1,682

1,740

1,693

1,500

1,227
1,000

874
679

500

2014/2

2015/2

2016/2

2017/2

2018/2

2019/2

2020/22021/2<New stores>
19Jewelry Business

Improve the ability to attract customers through the use of
the customer management system
 Improve the ability to attract customers through the use of the customer
management system (Approx. 420,000 members)
 Strengthen engagement with customers; propose attractive products(Thousands)

Number of Customer Management System Registered Customers

400

423

372
327

300

245
183

200

100

100

124

21
0
3Q

4Q

FY20191Q

2Q

3Q

FY20204Q

1Q

2Q

FY202120

Apparel Business

Expand Sales by Opening PALETTE Stores Plans to open 10 stores in the fiscal 2021 with the addition of four new stores in thesecond half Boost existing store sales by expanding PALETTE memberships and increasing the
fixed customer base (380,000→410,000)
 Increase sales through successful 25th anniversary events
PALETTE store opening area in the Kansai area

Kansai dominant
strategy promotion area

21

Apparel BusinessApparel Manufacturing Business: Increase Uniform Volume
 Increase uniform volume by leveraging production in Bangladesh Expectations of a pickup in the Content Business following the recovery fromCOVID-19
Apparel Manufacturing Supply Chain Map

China: deep China area

China: Guangzhou area
China: Shanghai area
Dhaka Office,Bangladesh

Ho Chi Minh area

22

Consolidated Business Results Forecasts
for Fiscal 2021 (1) Focus efforts on the Christmas, a period of peak demand; expectations of a pickup
due to a modest recovery in economic activity and positive correction in demand
Net sales: ¥40,500 million (+2.7% YoY )Operating income: ¥2,800 million (+1.2% YoY)
Ordinary income: ¥3,300 million (+3.3% YoY) Net income: ¥2,200 million (+35.6% YoY)
(Millions of yen)

Net sales
39,449Operating income

Ordinary income

Net income

3,300

2,200

40,500
2,767

2,800

3,195

1,622

+2.7%

+1.2%

FY2020
FY2021
FY2020
FY2021
Actual Results Results Forecasts Actual Results Results Forecasts+3.3%

FY2020
FY2021
Actual Results Results Forecasts+35.6%FY2020
FY2021
Actual Results Results Forecasts

23

Consolidated Business Results Forecasts
for Fiscal 2021 (2)FY2020 (2021/2)

FY2021 (2022/2)

Results(%)

Jul. 7 Revised
Forecasts

Net sales

39,449100.0

40,500Gross profit

21,29454.0

21,300Gross profit
margin54.0(Millions of yen, %)YoYJul. 7 Revised
Forecasts

Full-year
forecasts(%)

Increase(Decrease) (%)

Increase(Decrease) (%)

100.0

40,500

100.0

+2.7

±0

52.6

21,000

51.9

－1.4

－1.4

－2.1

－0.7

(%)

52.6

51.9

Selling, general andadministrative
expenses

18,52747.0

18,50045.7

18,200

44.9

－1.8

－1.6

Amortization of
goodwill

496

1.3

496

1.2

496

1.2

±0

±0

Operating income

2,767

7.0

2,800

8.0

2,800

6.9

+1.2

±0

Ordinary income

3,195

8.1

3,300

8.8

3,300

8.1

+3.3

±0

Net income

1,622

4.1

2,200

6.0

2,200

5.4

+35.6

±0

≪Reference ≫Operating income
before the amortizationof goodwill

FY2020 (2021/2)
3,263

8.3

FY2021 (2022/2)
3,296

9.2

3,296

YoY
9.2

Jul. 7 Revised
Forecasts

+1.0

±0

Net income before the
2,118
5.4
2,696
7.1
2,696
7.1
+27.3
amortization of goodwill* 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±024

Consolidated Business Results Forecasts by Segment
for Fiscal 2021 (Figures are after accounting for intrasegment net sales and transfers)
Jewelry Business
Projecting net sales of ¥19.4 billion and operating income of ¥1.7 billion
 Adopting a conservative approach toward the third quarter owing to the lingering effects of
COVID-19
 Forecasting a natural recovery owing to improvements in the operating environment andpickup on the back of various measures in the fourth quarter

Apparel Business
Projecting net sales of ¥21.1 billion and operating income of ¥1.2 billion
 Continue to promote existing store growth by opening 10 new stores and increasing PALETTE
memberships
 Target increase in revenue and earnings by also maintaining robust trends in the second half
FY2020(2021/2)(Millions of yen, %)Results
The Jewelry
Business
The ApparelBusiness

FY2021 (2022/2)
1H Results

2H Forecasts

Full-year
Forecasts

YoY

Net sales

20,641

7,894

11,506

19,400－6.0

Operatingincome

2,139

60

1,640

1,700

－20.5

Net sales

18,807

9,875

11,225

21,100+12.2

Operatingincome

896

547

653

1,200

+33.9

25

Contents
Ⅰ．Overview and Summary of the First Half of Fiscal 2021,
the Fiscal Year Ending February 28, 2022

Ⅱ．Measure for the Second Half of Fiscal 2021 andBusiness Results Forecasts for the Full Fiscal year

Ⅲ．Medium-Term Strategic Approach

Undertake Growth Investments Geared Toward
Sustainable Management
Taking into account conditions in the post-COVID-19 era, YONDOSHI HOLDINGS
will undertake various investments geared toward sustainable growth by leveraging
its solid financial base(1) Brand value enhancement and marketing investment
Continue to engage in advertising and sales promotion activities with aview to further lifting customers’ favorable impression of the Group’s
products(2) Store opening investment
Undertake investments aimed at PALETTE growth and building arobust business portfolio(3) System and DX investment
Address the transition to a digital society and changes in theenvironment(4) Human resources investment
Strengthen human capital for the sustainable enhancement ofcorporate value27

Undertake Growth Investments Geared Toward
Sustainable Management(1) Brand value enhancement and marketing investment
Enhance the 4ºC brand The F.D.C. Products Group, which handles the 4ºC
brand, to continue investing in advertising and sales
promotion based on a 5% sales ratio(2) Store opening investment
Expand the opening of PALETTE stores The everyday fashion brand PALETTE to promote a
strategy aimed at entrenching the Group’s dominantposition on the Kansai area by opening 1 new stores
annually, and to build a balanced and solid portfolio
28

Undertake Growth Investments Geared Toward
Sustainable Management(3) System and DX investment
Organization
 Newly established the System Development Department in March 2021
 Conduct DX training for approximately 100 Group executive employees

Development
 Introduce a customer management system Construct a core system for the next period
 Site renewal
29

Undertake Growth Investments Geared Toward
Sustainable Management(4) Human resources investment
Train management personnel
 Systematically develop the next generation of leaders; establish a deep andstable organization
 Encourage the advancement of women; provide management training
supportNurture a corporate culture Pass on the Company values and management philosophy through its
corporate university

30

Shareholder Returns Policy, Cash Dividends
 Work to realize a future annual cash dividend of ¥100 per common share Shareholder return policy: Ensure the payment of stable and continuous cash dividends;
identify dividend on equity (DOE) ratio of 4% or more as a new target Plans in place to pay an interim and period-end cash dividend of ¥41.50 per commonshare for an annual cash dividend of ¥83 per common share for the fiscal year ending
February 28, 2022, up ¥2 per common share compared with the previous fiscal year
DOE (Dividend on Equity)

Payout ratio

(%)

(%)

108.0

120
100

78.1

80

5
80.8

71.3

4

60
40

25.9

4.4

4.5

2021/22022/2(Forecast)

2

31.4

1

20
0

2.6

3

3.5

3.1

4.0

2017/2

2018/2

2019/2（％）

2020/22021/2FY2016(2017/2)

02022/2(Forecast)

2017/2FY2018(2019/2)

FY2017(2018/2)

2018/2

2019/2FY2019(2020/2)

2020/2

FY2021(2022/2)
Forecast

FY2020(2021/2)

Annual dividends per share (Yen)

50

65

75

80

81

83

DOE (Dividend on Equity) (*1)

2.6

3.1

3.5

4.0

4.4

4.5

Payout ratio (%)

25.9

31.4

78.1

71.3

108.0

80.8

12.2
28.7
64.9
69.2
Actual dividend payout ratio (*2)
*1 DOE (Dividend on Equity) = Total dividends ÷ Shareholders' equity*2 Actual dividend payout ratio: Total annual dividends / Net income before amortization of goodwill

82.7

65.9
31

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)32

Group Business Domains and Social Issues
Management strategies and social issues
Declining labor
population And
slowing economic growth

Increasing awareness toward
the environmental impact of
the fashion industry

Social Issues
1. Encouraging the advancement of
women

Incidence of funds flowing
to terrorist and criminalorganizations throughmoney laundering

Main InitiativesPromote the appointment of women as directors and managers, and support theirdevelopment
Establish a childcare work system that exceeds the legal requirements, and create acomfortable working environment

2. Eliminating illegal labor, includingchild labor

Incorporate clauses that prohibit illegal labor in contracts with suppliers
Confirm statutory and regulatory compliance by regularly conducting RJC audits

3. Promoting the use, proposal, and saleof sustainable products and materials

Switch to FSC-certified paper for accessories
Propose sustainable materials and products in ODM business4. Helping to solve water problems

Install water storage tanks in collaboration with the Japan Water Forum to solve
water problems and free women and children from water fetching labor

5. Preventing money launderingProcure diamonds in accordance with the Kimberley Process
Improve transparency in the procurement of precious metals in collaboration with
suppliers

33

Activities Aimed at Addressing ESG Issues
 As an RJC certified company, F.D.C. Products is working diligently to help
improve the reliability and standard of the jewelry market in each field※What is the RJC・・・
The Responsible Jewellery Council is an international not-for-profit, standards and certification organization. Coveringsocial and environmental responsibility focusing on the jewelry industry, the Council strives to realize responsible businesspractices for diamonds, gold and platinum across the entire jewelry supply chain and processes from mine to retail.

 Continuously support efforts to solve water-related issues as trustees of theJapan Water Forum

34

YONDOSHI HOLDINGS Group's Approachto Sustainability
YONDOSHI HOLDINGS Group announced details of its “Approach to Sustainability," whichsummarizes the Group's efforts to realize a sustainable society and to enhance its corporate value
in a sustainable manner

Please refer to the following site for details.
https://yondoshi.co.jp/images/sdg.pdf

35

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.
Financial Department (Kozuka)
TEL+81-3-5719-3295
E-mail ir-yondoshi@yondoshi.co.jp

Disclaimer: Forecasts and forward-looking statements are based on a wide range of assumptions.
YONDOSHI HOLDINSG INC. takes no responsibility for the accuracy of the information contained inthis document and does not guarantee its validity or outcome. Readers are asked to use this information
with the understanding that actual results may differ materially from estimates and forecasts.