CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST QUARTER OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2021
(March 1, 2020 to May 31, 2020)
July 8, 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): July 9, 2020
Supplemental materials prepared for quarterly financial results: No
Holding of quarterly financial results meeting: No
Dividend payment commencement date (planned): —(Millions of yen rounded down)

1. Consolidated Operating Results for the First Quarter of Fiscal 2020
(March 1, 2020 to May 31, 2020)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable toNet sales
Operating Income
Ordinary Income
owners of parent％

Millions of yen％

Millions of yen％

Millions of yen％

Millions of yen

1Q FY20207,850(29.6)
225(81.8)356(73.4)132(83.5)
1Q FY201911,143(0.6)
1,243
3.9
1,341(11.4)805(22.9)
Note: Comprehensive income 1Q FY2020: 821 million yen (1,060.1%) 1Q FY2019: 70 million yen (-93.5%)
Net Incomeper Share

1Q FY2020
1Q FY2019

Net Income perShare after Dilution
YenYen6.11—

35.35—(Reference) Operating income before the amortization of goodwill:
1Q FY 2020: ¥349 million
1Q FY 2019: ¥1,367 million
The Company considers operating income before the amortization of goodwill to be an importantmanagement indicator.
(2) Consolidated Financial Position
Total Assets

Net Assets to TotalAssets

Net Assets

Millions of yen%

Yen

39,57269.0

1,820.32

39,58873.5

1,822.10

Millions of yen

May 31, 2020
57,22453,737
February 29, 2020
(Reference)
Shareholders’ equity: May 31, 2020: 39,497 million yen

Net Assets per Share

February 29, 2020: 39,514 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2019
Fiscal 2020
Fiscal 2020
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-endYen

Yen

Yen

Yen

Yen——40.00

—

40.00

80.0040.50—40.5081.00

Note: Revision to dividend forecast for the first quarter of the fiscal year ending February 28, 2021: Yes-1-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 toNet Income
Operating Income Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen

Interim period
Fiscal yearendingFebruary 28,2021%

Millions of yen%

17,500(20.2)

900 (59.0)

39,000(13.3)

2,900 (27.1)

Millions of yen%

1,100 (53.6)
3,300(23.5)

Millions of yen%

Yen

400 (73.1)

18.44

2,000 (19.2)

92.19

Note: Revisions to consolidated operating forecasts for the first quarter of the fiscal year ending February 28, 2021:
Yes(Reference) EPS before the amortization of goodwill is ¥115.08.

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 ConsolidatedFinancial 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:
May 31, 2020: 24,331,356 sharesFeb. 29, 2020: 24,331,356 shares
2. Total number of treasury stock as of the period-end:
May 31, 2020: 2,633,409 sharesFeb. 29, 2020: 2,645,286 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidatedperiod)First quarter fiscal 2020: 21,693,542 shares First quarter fiscal 2019: 22,773,543 shares
Note: The number of recorded treasury stock includes 18,000 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust (hereinafter referred to the “the Trust”) and41,456 of the Company’ shares held by the Shares Grant Trust for Officers as of the end of 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 arebased 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 varietyof 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 4.

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Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)Explanation of Business Results4(2)Explanation of Financial Condition

4(3)Explanation of Consolidated Results Forecasts and Other Future Predictions

4Consolidated Quarterly Financial Statements

5(1)Consolidated Quarterly Balance Sheets

5(2)Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of7

Comprehensive Income(3)

Consolidated Quarterly Statements of Income First Quarter Cumulative

7

Consolidated Quarterly Statements of Comprehensive Income

8First Quarter Cumulative

Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)9(Notes Regarding Substantial Changes in Shareholders’ Equity)

9(Application of Special Accounting Treatment in the Preparation of the Consolidated

9Financial Statements)(Changes in Accounting Policy)9(Additional Information)

9(Segment Information)

11-3-1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first quarter period (March 1, 2020 to May 31, 2020) of fiscal 2020 (ending February 2021),
conditions in the Japanese economy were extremely severe, with an acute slump in business amid thesuspension of economic activity due to the COVID-19 emergency.
In the retail industry, business conditions were difficult overall as a result of the government’s call forpeople to remain at home, as well as business suspensions and shortened operating hours at stores.
Under these circumstances, during fiscal 2020, the final year of the fifth medium-term management
plan, the YONDOSHI HOLDINGS Group continues to cultivate human resources, bolster productcapabilities, and assess market trends, with the aim of becoming a century-old company and brand.
Further, the Company has implemented CSR-based management to establish a highly trusted corporategroup, and is working 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, net sales for the subject first quarter period amounted to ¥7,850 million (down 29.6% fromthe same period of the previous fiscal year), with operating income of ¥225 million (down 81.8%),
ordinary income of ¥362 million (down 72.9%) and profit attributable to owners of parent to ¥139 million(down 82.7%). Operating income before the amortization of goodwill, which the Company considers to
be an important management indicator, amounted to ¥349 million (down 74.4%).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group implemented measures to help prevent the spread of COVID-19, including
suspending business operations and shortening operating hours at stores in stages from March. Of note,
all stores were closed from the period of April 25 to May 6.
As a result, net sales in the Jewelry Business segment amounted to ¥3,414 million (down 46.8% fromthe same period of the previous fiscal year), with operating income of ¥152 million (down 85.2%).
Apparel Business
The AS’TY Group experienced a decline in additional orders due to the difficult conditions in the retailindustry, but earnings were favorable as a result of successful cost reduction measures. Retailer age Co.,
Ltd. focused on business operations for the mainstay everyday fashion brand PALETTE to fulfill its roleas part of the social infrastructure supporting the lives of local customers.
As a result, net sales in the Apparel Business segment amounted to ¥4,436 million (down 6.1% fromthe same period of the previous fiscal year), with operating income of ¥193 million (down 31.9%).
(2) Explanation of Financial Condition
Total assets at the end of the subject first quarter period (May 31, 2020) amounted to ¥57,224 million, anincrease of ¥3,487 million from the end of the previous fiscal year (February 29, 2020). This was due
mainly to increases of ¥1,004 million in cash and deposits; and ¥2,058 million in investment securities.
Total liabilities amounted to ¥17,652 million, an increase of ¥353 million from the end of the previous
fiscal year. This was due mainly to an increase of ¥4,200 million in short-term borrowings. Total net assets
at the end of the subject period amounted to ¥39,572 million, a decrease of ¥1,500 million from the endof the previous fiscal year.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Regarding consolidated results forecasts for fiscal 2020 (ending February 28, 2021), although theCOVID-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 thesubject 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.

-4-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 First Quarter ofthe Fiscal Year Ending
February 28, 2021
(As of May 31, 2020)

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

1,790
2,474
9,155
1,120
562
3,466
(3)

16,976

18,567

5,307
5,492
698

5,255
5,492683

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

11,431Intangible assets:
Goodwill
Other intangible assets

Total property, plant and equipment

3,227
214

3,103
240

Total intangible assets

3,441

3,343

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

16,507582
4,782(51)

18,566591
4,780(56)

Total investments and other assets

21,82023,881

36,76038,65753,73757,224

Total noncurrent assets
Total assets-5-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 First Quarter ofthe Fiscal Year Ending
February 28, 2021
(As of May 31, 2020)

3,902
82
434
227
24
70
3,109

3,529
4,200
82
478
289
13
67
3,348

7,851

11,010

79

87

500
1,358
4,358

491
1,366
4,696

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term borrowings
Current portion of long-term borrowings
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

6,297

6,642

Total liabilities

Total noncurrent liabilities

14,14917,652NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earningsTreasury stock

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

2,486
7,233
31,370(5,719)36,06635,360

Other 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)

4,314
3(161)
22(42)

Total other accumulated comprehensive income

3,447

4,136

Subscription rights to shares
Total net assets
Total liabilities and net assets-6-747539,588

39,57253,73757,224

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

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

Net sales
Cost of Sales

11,143
4,764

Gross profit

6,379

4,114

Selling, general and administrative expenses

5,135

3,889

Operating income

1,243

225
7247
18

Foreign exchange gains
Other125018416Total non-operating income

10214401021
10

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
Commission for purchase of treasury shares
Foreign exchange losses
Loss on insurance cancellation
Other――
0

Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Subsidies for employment adjustment
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on valuation of investment securities
Loss on closing of stores
Allowance for absence from work

7,850
3,735

―
5―
630413

1,341

356

99

―

13154

99

168

―

23014
201

139
8―

Total extraordinary losses

147

239

Net income before income taxes

1,292

285

Total income taxes

487

152

Net income

805

132

Profit attributable to owners of parent805

132-7-Consolidated Quarterly Statements of Comprehensive Income
First Quarter Cumulative(Millions of yen)First Quarter of theFiscal Year EndedFebruary 29, 2020
(March 1, 2019 toMay 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-8-

First Quarter of theFiscal Year EndingFebruary 28, 2021
(March 1, 2020 toMay 31, 2020)
805

132

(724)
(4)
(5)
(0)

720
1(34)
1(734)
70

688
821

70821

(3) 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 FinancialStatements)(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
first 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 incometaxes.
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.
i. Transaction summaryThe 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 theShareholding 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). At the end of the subject fiscal year, the book value of thesubject treasury shares was ¥71 million, for 26,000 shares at the end of the previous consolidated fiscalyear, and ¥49 million, for 18,000 shares at the end of the first quarter of the subject consolidated fiscalyear.
iii. Book value of debt recorded through application of the gross method
At the end of the previous consolidated fiscal year: ¥82 million
At the end of the first quarter of the subject consolidated fiscal year: ¥82 million-9-

(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 (excludingdirectors 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 ¥104 million, for 41,456 shares at the end of the first 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.

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(Segment Information)
Ⅰ The first quarter of the fiscal year ended February 29, 2020 (March 1, 2019 to May 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

6,420

4,723

11,143―

11,143

―

171

171

(171)

―

Total

6,420

4,894

11,314(171)11,143

Segment income

1,031

284

1,316(73)1,243

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥73 million for segment income mainly includes amortization of goodwill totaling minus¥124 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥147 million and elimination of inter-segment transactions of ¥198 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 byReporting Segment
There was no major impairment loss recorded during the period under review.
Ⅱ The first quarter of the fiscal year ending February 28, 2021 (March 1, 2020 to May 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

3,414

4,436

7,850

―

7,850

―

4747

(47)

―

Total

3,414

4,484

7,898

(47)

7,850

Segment income

152

193

346(120)225

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥120 million for segment income mainly includes amortization of goodwill totaling
minus ¥124 million, general administrative expenses that are not attributable to individual reporting segments amounting
to minus ¥123 million and elimination of inter-segment transactions of ¥127 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.

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