CONSOLIDATED FINANCIAL REPORTFISCAL 2015（Japanese GAAP）(March 1, 2015 to February 29, 2016)
April 11, 2016
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Hidenori Suzuki, President and Representative Director
Masahiko Nishimura, Director and Executive Officer responsible for finance
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 19, 2016
Fiscal 2015 Securities Report filing date (planned): May 20, 2016
Dividend payment commencement date (planned): May 20, 2016
Supplemental materials prepared for financial results: Yes
Holding of financial results meeting: Yes (for analysts and institutional investors)(Millions of yen rounded down)

1. Consolidated Performance for FY 2015 (March 1, 2015 to February 29, 2016)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen

Ordinary Income%

Millions of yen%

Millions of yen

Net Income%

Millions of yen

FY 2015

52,883

4.3

6,113

11.8

6,854

10.8

4,277

18.4

FY 201450,726

3.5

5,467

11.5

6,186

9.6

3,612

13.4

(Note) Comprehensive income: FY 2015: ¥3,313 million (－26.5%) FY 2014: ¥4,510 million (28.1%)
Ordinary Income
to Total Assets

Ordinary Income
to Operating
Revenues%%%

FY 2015163.22
162.92
9.4
FY 2014133.90133.698.1(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2015: ¥481 million
FY 2014: ¥463 million

11.3
10.4

11.6
10.8

Net Income Per
Share

Net Income Per
Share (Diluted)

Yen

ROE

Yen

(2) Consolidated Financial Position
Total Assets

Net Assets to Total

Net Assets

Net Assets per Share ofCommon Stock

AssetsMillions of yen

Millions of yen%

Yen

As of February 29, 2016

60,57645,23774.6

1,747.62

As of February 28, 2015

60,57745,41874.9

1,707.15(Reference) Shareholders’ equity: As of February 29, 2016: ¥45,168million

As of February 28, 2015: ¥45,374 million(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at the Endof the Period
Millions of yen

FY 2015

5,319

(545)

(3,739)4,985

FY 2014

4,329(1,184)(3,298)

3,952

Operating Activities

Investing Activities― 1 ―Financing Activities

2.

Dividends
Cash Dividends per Share of Common Stock
End of 1Q End of 2Q End of 3Q

FY 2014
FY 2015
FY 2016 (planned)3.

End of 4Q

AnnualCashDividend

Dividends

Payout Ratio

to Net Assets

Paid (Annual)(Consolidated)(Consolidated)

Cash Dividends

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

—
—
—

16.00
20.00
25.00

—
—
—

16.00
20.00
25.00

32.00
40.00
50.00

899
1,070

23.9
24.5
26.5

1.9
2.3

Forecast of Consolidated Results for FY 2016 (March 1, 2016 to February 28, 2017)(% figures for the full fiscal year represent year-on-year increase or decrease,% figures for the interim period are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues

InterimFull Fiscal Year

4.

Operating Income

Ordinary Income

Profit attributable to

Net Income perowners of parent

Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,30051,500

(3.1)
(2.6)

2,450
6,550

11.2
7.1

3,000
7,700

26.0
12.3

2,000
4,950

44.7
15.7

76.32
188.89Other(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): No
New: —
Excluded: —(2) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
1) Changes of accounting principles in line with revisions to accounting and other standards: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: No4) Retrospective restatement: Yes(3) Number of shares issued and outstanding (common shares)
1. Number of shares issued and outstanding as of the end of the period (including treasury stock)
As of February 29, 2016: 29,331,356 shares
As of February 28, 2015: 29,331,356 shares
2. Number of treasury stock
As of February 29, 2016: 3,485,424 shares
As of February 28, 2015: 2,752,078 shares
3. Average number of shares for the year
FY2015: 26,205,718 shares
FY2014: 26,976,741 shares
Notes:
1. The number of recorded treasury stock is inclusive of 173,400 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust Account as of the end of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share,please refer to “Per Share Information” on page 22.

(Reference) Non-Consolidated Performance
1. Non-Consolidated Performance for FY 2016 (March 1, 2016 to February 28, 2017)(1) Non-Consolidated Business Results(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues
Millions of yen%

Operating Income
Millions of yen

Ordinary Income%

Millions of yen%

Net Income
Millions of yen%

FY 2015

2,076

4.3

1,546

8.3

1,492

8.1

341

(69.8)FY 2014

1,990

20.5

1,428

31.2

1,381

28.9

1,131

24.9

Yen

Net Income Per Share(Diluted)Yen

FY 2015

12.62

12.60

FY 2014

40.26

40.20

Net Income per Share― 2 ―(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 29, 2016

35,752

19,11753.3

716.59As of February 28, 2015

36,163

22,62562.4

818.07(Reference) Shareholders’ equity: As of February 29, 2016: ¥19,048 million

As of February 28, 2015: ¥22,582 million

Regarding the Status of Review Procedure Implementation
This financial report for the fiscal 2015 is not subject to the review procedures stipulated in the Financial
Instruments and Exchange Act of Japan. As of the date of disclosure of this report, the review procedures forthe financial statements under the Financial Instruments and Exchange Act had not been completed.
Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
The forecasts of operating results and other items concerning the future contained in this document are basedon management’s assumptions and beliefs that are determined to be reasonable in light of currently available
information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety of factors actual results may
differ materially from forecasts. For the assumptions that underpin operating results forecasts as well as
cautionary notes on the use of operating results forecasts, please refer to the information from page 6.

― 3 ―Contents
1.

ANALYSIS of OPERATING RESULTS and FINANCIAL POSITION

5(1)

Analysis of Operating Results

5(2)

Analysis of Financial Position

7(3)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2015and Fiscal 2016

7

2.

MANAGEMENT POLICIES

8

3.

Basic Stance on Selection of Accounting Standards

8

4.

CONSOLIDATED FINANCIAL STATEMENTS

9(1)

Consolidated Balance Sheets

9(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

11

Consolidated Statements of Income

11

Consolidated Statements of Comprehensive Income

12

(3)

Consolidated Statements of Changes in Net Assets

13

(4)

Consolidated Statements of Cash Flows

15

(5)

Notes to Consolidated Financial Statements

17(Notes Regarding Going Concern Assumptions)17(Changes in Accounting Policies)

17(Segment Information)

17(Per Share Information)

22(Important Subsequent Events)

22

5.

OTHER

23

(1)

23

Changes in Management― 4 ―1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In fiscal 2015, the fiscal year ended February 29, 2016, the Japanese economy showed signs of recovery, due
mainly to higher earnings at certain companies and an improvement in employment conditions. However, theoutlook for future market conditions became increasingly uncertain, reflecting such factors as the decline inreal wages, sluggishness in consumer spending, and downside risks associated with overseas economies
including China.
In the retail industry, despite signs of inbound demand in metropolitan areas, unstable conditions
continued owing to variety of factors including the prolonged trend toward frugality and inclement weather
conditions.
Under these circumstances, the YONDOSHI HOLDINGS Group continued to nurture humanresources, bolster product capabilities, and assess market trends, with the aim of becoming a century-old
company and brand throughout the fiscal year ended February 29, 2016, the initial year of the fourth
medium-tern management plan. Furthermore, we practiced CSR-based management to establish a highly
trusted corporate group, and endeavored to enhance corporate value by strengthening internal controls,
providing shareholder returns, and making medium- to long-term investments linked to earnings growth.
In addition, we took steps to establish a Group synergy system as a part of efforts to addressGroup-wide issues through a host of Group strategy promotion endeavors.
In the Jewelry Business, largely undertaken by the F.D.C. Products Group, we continued to
implement measures aimed at enhancing the value of the 4°C jewelry brand. At the same time, we undertook
renovations and expanded the scale of our composite operations in a bid to revitalize existing stores. Among avariety of measures, we also worked diligently to open new stores focusing mainly on the canal 4°C and Luria
4°C jewelry brands.
In the Apparel Business, the AS’TY Group took steps to strengthen project planning capabilities andto rebuild our production structure. Through MISUZU Co., Ltd., we strove to energize existing stores bystrengthening individual products. While at age Co., Ltd., we opened stores that reinforce the company’s
dominant position in the Kansai area in the PALETTE everyday fashion brand business.
Taking each of the aforementioned activities into consideration, net sales amounted to ¥52,883
million (up 4.3% compared with the previous fiscal year). From a profit perspective, operating income came to¥6.113 million (up 11.8% YoY), ordinary income was ¥6,854 million (up 10.3% YoY), and net income was¥4,277 million (up 18.4% YoY).
Based on the level of revenues and earnings reported, net sales rose for the fifth consecutive year.
Operating income and net income were also up for a fourth consecutive year while the Group posted a record
high ordinary income for a fifth consecutive year.
Operating results by business segment were as follows.
YONDOSHI HOLDINGS revised its business segment classifications from the first quarter of the fiscal year
under review (ended February 29, 2016). Year-on-year comparative data is after restating figures for thecorresponding period of the previous fiscal year in accordance with revised business segment classifications.
Jewelry Business
Net Sales¥
31,880 million (Up 11.7% YoY)
Operating Income¥
5,831 million (Up 17.1% YoY)
In the Jewelry Business, largely undertaken by the F.D.C. Products Group, trends in mainstay 4°C jewelry
were robust. This was mainly due to successful efforts aimed at broadening operating zones and expanding therange of items in line with the renovation of existing stores as well as the rolling out of composite stores.
During the fiscal year under review, the F.D.C. Products Group conducted 4°C BRIDAL fairs and proactively
expanded the number of canal 4°C stores. As a result, the performance of both brands improved substantially.
In specific terms, the Group reported a double-digit percentage increase in 4°C BRIDAL and canal 4°C sales
compared with the previous fiscal year. In fiscal 2015, operating results in the Jewelry Business were also
driven by aggressive steps to open more than the originally planned number of Luria 4°C brand stores, asignificant increase in the number of stores handling 4°C bags, and a fourth consecutive fiscal period of
double-digit percentage growth in the EC Business.
Accounting for each of these factors, revenue and earnings increased compared with the previous
fiscal year. Net sales and operating income in the Jewelry Business reach record highs for a fourth and seventh
consecutive fiscal period, respectively.

― 5 ―Apparel Business
Net Sales¥
21,003 million (Down 5.3% YoY)
Operating Income¥
188 million (Down 63.9% YoY)
Despite making steady progress in the shift of production to Bangladesh, the AS’TY Group encountereddifficulties in the Apparel Business. This was mainly due to the slump in market conditions and the weak yen.
While MISUZU Co., Ltd. made efforts to revitalize existing stores, the company struggled as a result of
unseasonable weather and other factors. Results at age Co., Ltd. were robust. This largely reflected the openingof new stores in the mainstay everyday fashion brand PALETTE as planned, and the strong performance byexisting stores.
Based on each of the aforementioned factors, net sales and operating income fell below the levels
recorded in the previous fiscal year.
Outlook
Looking ahead, we believe that Japan’s economy may enter a downward phase. Amid concerns surrounding
the impact of volatility in financial and capital markets, this belief reflects uncertainties with respect tooverseas economies due to such factors as the slump in crude oil prices and weakening economic growth inChina.
Operating conditions in the retail sector are expected to become increasingly difficult. This is largely
due to the forecast trend toward continued frugality stemming from consumers’ perceptions and the need toprotect their daily lives.
Against this backdrop, the YONDOSHI HOLDINGS Group will continue to nurture humanresources, bolster product capabilities, and assess market trends, with the aim of becoming a century-old
company and brand throughout the second year of its fourth medium-tern management plan. At the same time,
we will continue to practice CSR-based management to establish a highly trusted corporate group, while
endeavoring to enhance corporate value by strengthening internal controls, providing shareholder returns, andmaking medium- to long-term investments linked to earnings growth.
In addition, we have set up the Group Strategy Promotion Office, which reports directly to thepresident, and will work diligently to further reinforce Group synergies.
Through the F.D.C. Products Group, which is a major driver of the Group’s Jewelry Business, wewill continue to push forward initiatives aimed at enhancing the value of the 4°C jewelry brand. Moreover, we
will continue to revitalize existing stores through renovations, broaden operating zones and expand the rangeof items, and expand sales areas through our product mix. Building on these endeavors, we will look to open
new 4°C BRIDAL, canal 4°C, Luria 4°C, and other brand stores while taking up the challenge of nurturing of
new businesses including a designated bridal e-commerce site.
In the Apparel Business, the AS’TY Group will establish a robust production structure andstrengthen our design and marketing capabilities. age Co., Ltd. will reinforce its dominant position in the
Kansai area by opening new stores in the PALETTE everyday fashion brand business while making every
effort to ensure growth at existing stores.
Taking each of these endeavors into consideration, the YONDOSHI HOLDINGS Group iscommitted to becoming a strong corporate group with a unique and distinct identity.
Based on the aforementioned, net sales are projected to reach ¥51,500 million, operating income tototal ¥6,550 million, ordinary income to come to ¥7,700 million, and net income to amount to ¥4,950 million
on a consolidated basis in the fiscal year ending February 28, 2017.
(2) Analysis of Financial Position
The Status of Assets, Liabilities, and Net Assets
Total assets as of the end of the fiscal year under review stood at ¥60,576 million, a decrease of ¥1
million compared with the end of the previous fiscal year. While the balance of short-term securities climbed¥1,140 million, this decrease in assets was largely attributable to a drop in the balance of investment securitiesof ¥1,122 million.
Total liabilities came to ¥15,338 million. This was ¥178 million higher than the balance as ofFebruary 28, 2015. The principal movement during the fiscal year under review was the increase in notes andaccounts payable ― trade of ¥119 million.
Total net assets stood at ¥45,237 million as of February 29, 2016, down ¥180 million compared withthe end of the previous fiscal year. While retained earnings climbed ¥3,325 million, this decrease in net assets
was largely attributable to an increase in treasury stock of ¥2,483 million.

― 6 ―Cash Flows
On a consolidated basis, cash and cash equivalents as of the end of the fiscal year under review stood at¥4,985million, an increase of ¥1,032 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥5,319 million. This was an increase of ¥990
million compared with the previous fiscal year. The major cash inflow came from net income before income
taxes totaling ¥6,728 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥545 million, up ¥639 million compared with the previous fiscal
year. The major cash outflow was from the purchase of property, plant and equipment of ¥1,063 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥3,739 million, down ¥440 million compared with the previous
fiscal year. The major cash outflows were the purchase of treasury stock of ¥3,151 million.
(Reference) Trends in the YONDOSHI HOLDINGS Group’s cash flow indicators are provided in thefollowing table.
Fiscal 2012
Fiscal 2013
Fiscal 2014
Fiscal 2015
Shareholders’ equity ratio (%)
76.9
75.3
74.9
74.6
Shareholders’ equity ratio based on
51.7
74.3
88.5
105.9
market capitalization (%)
Cash flow to interest-bearing debt
0.3
0.2
0.2
0.2
ratio (Year)
Interest coverage ratio (Times)
231.1
1,851.9
2,525.0
6,636.5
Notes:
Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio based on market capitalization: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest payments
 Each indicator is calculated based on figures from consolidated financial statements.
 Market capitalization is calculated based on the number of shares issued and outstanding at the end of the period after
deducting treasury stock.
 Interest-bearing debt includes all interest-bearing debt recorded under liabilities in the consolidated balance sheets.
 Cash flow from operating activities is taken from net cash provided by (used in) operating activities in the consolidated
statements of cash flows. Interest payments are taken from cash paid for interest in the consolidated statements of cash
flows.

(3) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2015 and Fiscal 2016
The YONDOSHI HOLDINGS Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group strives to deliver stable and sustainable cash dividends. At the same time, theGroup adopts a flexible policy toward the purchase of treasury stock as a part of comprehensive efforts toincrease the level of returns to shareholders.
Based on the aforementioned policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash
dividend of ¥20 per common share. Together with the interim cash dividend paid of ¥20 per common share,
the full fiscal year cash dividend for fiscal 2015 will therefore come in at ¥40 per common share. Looking at
dividends for fiscal 2016, the Company plans to pay an interim and fiscal year-end cash dividend of ¥25 percommon share for a full fiscal year cash dividend of ¥50 per common share.
In addition to the appropriation of profits through cash dividends, YONDOSHI HOLDINGS has
established a shareholder special benefit plan. Shareholders of record as of the end of the period can choose
from three benefit options including shareholder gift certificates, Group products and a donation to the Japan
Water Forum, which is introduced as a CSR-oriented benefit.
Furthermore, in an effort to better prepare the Group for the road ahead and to pursue businessdevelopment, YONDOSHI HOLDINGS will continue to enhance profitability and reinforce the Group’s
management and business platforms while fulfilling the expectations of shareholders going forward. At thesame time, the Group will take into consideration the internal working capital required to reinforce its
management structure in response to an increasingly competitive environment, cultivate new markets, develop
new brands and pursue business development through a variety of vehicles including M&A.

― 7 ―

2. Management Policies(1) Basic Management Policies
The YONDOSHI HOLDINGS Group engages in business development activities based on four coremanagement philosophies.
We are committed to:
1. becoming a company that inspires trust and confidence among its customers
2. fostering and fulfilling the dreams of our employees
3. contributing to the prosperity and well-being of society, and
4. realizing the expectations of shareholders.
With the 4ºC brand at the heart of its business activities, YONDOSHI HOLDINGS is committed to
becoming a company that is defined by its ability to create new trends in global fashion. We are committed toputting our heart and soul into anticipating customers’ needs and forever enhancing customers’ lifestyles.
With a deep respect for people and a fearless stance toward innovative change, the YONDOSHIHOLDINGS Group places the utmost importance on a corporate culture that continues to push the limits.
The efforts are grounded in the aspiration to bring a smile to the faces of all customer while inspiring
their hearts and minds.
(2) Target Operating Indicators
Under its fourth medium-term management plan, which begins in the fiscal year ending February 29, 2016,
YONDOSHI HOLDINGS plans to follow a path of “Challenge and Evolution.” In specific terms, theCompany has identified the numerical vision of achieving consolidated net sales of ¥60 billion or more,ordinary income of ¥8.0 billion or more, and an ROE of 10% or higher. Moving forward, we will advancebusiness strategies and implement a variety of measures aimed at improving profitability, increasing theefficiency of our investments, and effectively utilizing all available funds.
(3) Medium- to Long-Term Operating Strategies
Details of the Company’s medium- to long-term operating strategies are outlined in “1. Analysis of Operating
Results and Financial Position (1) Analysis of Operating Results (Outlook)” on page 6.
(4) Pending Issues
The YONDOSHI HOLDINGS Group will work diligently to overcome the following issues in an effort tostrengthen its ability to address changes in the market and establish robust competitive advantage.
i. The F.D.C. Products group
The F.D.C. Products group will continue to pursue steady growth while further increasing its
operating income. To this end, the group will implement a variety of measures aimed at developing its
business, focusing mainly on enhancing the value of the 4°C jewelry brand, and expanding newmarkets.
ii. The AS’TY group
The AS’TY group will endeavor to secure stable operating income by expanding its apparel
manufacturing business and rebuilding its wholesale business.
iii. age Co., Ltd.
age will expand operating income by opening PALETTE stores that will reinforce its dominantposition in the Kansai area and increasing its profile and visibility in the market.
3. Basic Stance on Selection of Accounting Standards
The YONDOSHI HOLDINGS Group prepares its consolidated financial statements in accordance withJapanese Generally Accepted Accounting Principles. With respect to International Financial ReportingStandards (IFRS), the YONDOSHI HOLDINGS Group will respond adequately with consideration of thesituation in Japan and overseas.

― 8 ―4. CONSOLIDATED FINANCIAL STATEMENTS(1) Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2015

February 29, 2016

(As of February 28, 2015)(As of February 29, 2016)

ASSETS
Current assets:
Cash and deposits

1,952,933

Notes and accounts receivable ― trade

3,451,619

2,145,844
3,671,116

Short-term investment securities

2,000,000

3,140,000

Merchandise and finished goods

7,383,018

7,612,167

Work in process

871,733

746,972

Raw materials and supplies

723,203702,663

Deferred tax assets

482,082

520,738

Advance payments-trade

2,465

2,677

Accounts receivable-other142,460

130,500

Other

301,863

241,858

Allowance for doubtful accounts(7,625)(11,940)

17,303,755

18,902,600

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

5,546,145

6,028,177

Land

5,528,465

5,528,465

Lease assets, net

285,754258,728

Construction in progress

389,900－

Other, net

536,913843,549

12,502,999

12,658,921

Goodwill

5,709,806

5,213,301

Lease assets

459,992

288,720

Total property, plant and equipment
Intangible assets:

Right of trademark

1,453

1,143

103,920

84,4096,275,172

5,587,575

Investment securities

19,613,353

18,490,635

Guarantee deposits

346,405

334,717Long-term loans receivable

22,26818,118Deferred tax assets

374,736

674,181

Other
Total intangible assets
Investments and other assets:

Deferred tax assets for land revaluation
Real estate for investment, net
Net defined benefit asset－

75,412745,032

458,477

614,916

391,765

Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and otherOther

2,356,233

2,414,191

87,85885,924

451,856

598,005

Allowance for doubtful accounts(116,688)(114,219)

Total investments and other assets

24,495,972

23,427,211

43,274,144

41,673,708

60,577,900

60,576,308

Total noncurrent assets
Total assets― 9 ―(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2015

February 29, 2016

(As of February 28, 2015)(As of February 29, 2016)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade4,170,142

4,289,341

Short-term loans payable

48,310－

Lease obligations

278,268

280,597

Income taxes payable

1,399,367

1,545,501

Provision for bonuses

355,684

528,148

Provision for directors’ bonuses

41,94656,600－13,391

Asset retirement obligations
Other

4,093,625

3,616,441

Total current liabilities

10,387,344

10,330,022

Noncurrent liabilities:
Long-term loans payable－

478,810

Lease obligations

530,330

345,705

Long-term guarantee deposited

319,085

324,428

1,824,453

1,565,624

Net defined benefit liability

614,881

669,081

Provision for directors’ retirement benefits

385,296

433,131

1,002,570

1,040,972

95,727150,709

Deferred tax liabilities

Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities

4,772,345

5,008,462

15,159,689

15,338,485

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,230,806

18,146,513

Retained earnings

26,633,216

29,958,714

Treasury stock(3,284,842)(5,768,298)

Total shareholders’ equity

44,065,700

44,823,450

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land

1,481,751

810,524

13,339(34,981)(233,476)(158,063)

Foreign currency translation adjustments

85,054

81,167

Remeasurements of defined benefit plans(37,476)(353,371)

Total accumulated other comprehensive income

1,309,198

345,275

Subscription rights to shares
Total net assets
Total liabilities and net assets― 10 ―

43,311

69,09745,418,210

45,237,823

60,577,900

60,576,308

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal 2014

Fiscal 2015

(March 1, 2014 to(March 1, 2015 toFebruary 28, 2015)

February 29, 2016)

Net sales

50,726,266

52,883,639

Cost of Sales

21,789,099

22,051,666

Gross profit

28,937,167

30,831,973

Selling, general and administrative expenses

23,469,265

24,717,982

Operating income

5,467,901

6,113,990

Non-operating income
Interest income

14,116

15,823

Dividends received
Equity in earnings of affiliates

74,97587,600463,052

481,960

Rent of real estate for investment

101,940

95,353Foreign exchange gains

31,483

4,015

Other

81,80569,787

Total non-operating income

767,373781,540

Non-operating expenses
Interest expenses

1,714

801

Depreciation on investments in real estate

5,968

5,950

Management cost on real estate for investment

2,046

2,046

Commission for purchase of treasury stock

35,36425,600

Other

3,951

6,145

Total non-operating expenses

49,04640,5436,186,229

6,854,987

Ordinary income
Extraordinary income
Gain on sales of investment securities－

64,675Gain on sales of noncurrent assets

47,797

67,167

Gain on Liquidation of Subsidiaries and Affiliates’ Stocks

104,118－750－

152,665

131,842

Other
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets

8,140

－

Impairment loss

291,939

227,936

Loss on closing of stores

43,111

6,359－

24,372Demolition costs

8,880

－

Total extraordinary losses

Other

352,072

258,668

Net income before income taxes

5,986,822

6,728,161

Income taxes ― current

2,262,588

2,557,311

Income taxes ― deferred

112,133(106,332)

2,374,721

2,450,978Total income taxes
Income before minority interests

3,612,100

4,277,182

Net income

3,612,100

4,277,182― 11 ―

Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal 2014

Fiscal 2015

(March 1, 2014 to(March 1, 2015to

February 28, 2015)

February 29, 2015)

Income before minority interests

3,612,100

4,277,182

Other valuation difference on available-for-sale securities

625,870(586,514)

Deferred gains or losses on hedges
Revaluation reserve for land

23,599(48,186)－

75,412Foreign currency translation adjustments

42,216(3,887)－(199,300)

207,050(201,446)

898,735
4,510,836(963,922)
3,313,260

4,510,836

3,313,260

Other comprehensive income

Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent― 12 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2014 (March 1, 2014 to February 28, 2015)(Thousands of yen unless otherwise stated)

Balance at the end of previous period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Treasury stock
Treasurystock
Retained(held byTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,322,104

23,978,284(1,362,090)

2,486,520

18,322,104

23,978,284(1,362,090)

Total
treasury
stock

Total
shareholders’equity(148,172)(1,510,263)

43,276,646(148,172)(1,510,263)

43,276,646—

Changes of items during the period
Dividends from surplus(957,168)(957,168)

Net income

3,612,100

3,612,100

Purchase of treasury stock
Disposal of treasury stock
Net changes in commission forpurchase of treasury stock fromaffiliates accounted for by equity
methodChange in equity in affiliates
accounted for by equity
method-treasury stock
Sales of treasury stock from Employee
Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period(2,083,827)(2,083,827)(2,083,827)

56,59956,59968,995

12,395(107,794)(107,794)

4,100

203,826

203,826

207,926

48,822

48,822

48,822—(91,298)

2,654,932(1,823,401)

48,822(1,774,579)

789,0542,486,520

18,230,806

26,633,216(3,185,492)(99,350)(3,284,842)

44,065,700(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasurystock
Net changes incommission forpurchase of treasury
stock from affiliates
accounted for byequity method
Change in equity inaffiliates accounted
for by equity
method-treasury stock
Sales of treasury stockfrom Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeSubscrip-tion
rights tosharesTotal net
assets648,982(10,415)(233,476)

42,838—447,929

19,421

43,743,997—

648,982(10,415)(233,476)

42,838—447,929

19,421

43,743,997(957,168)
3,612,100(2,083,827)
68,995(107,794)

207,926
48,822
832,774

23,754—42,216(37,476)

861,268

23,889885,158

832,774

23,754—42,216(37,476)

861,268

23,8891,674,212

1,481,757

13,339(233,476)

85,054(37,476)

1,309,198

43,31145,418,210― 13 ―

Fiscal 2015(March 1, 2015 to February 29, 2016)(Thousands of yen unless otherwise stated)

Balance at the end of previous period
Cumulative effects of changes inaccounting policies
Restated balance

Shareholders’ equity
Treasury stock
Treasurystock (held
RetainedbyTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,230,806

26,633,216

Total
treasury
stock

Total
shareholders’equity(3,185,492)(99,350)(3,284,842)

44,065,700(3,185,492)(99,350)(3,284,842)

44,090,629

24,9282,486,520

18,230,806

26,658,145

24,928Changes of items during the period
Dividends from surplus(976,612)(976,612)

Net income

4,277,182

4,277,182

Purchase of treasury stock(2,602,207)

Disposal of treasury stock
Net changes in commission forpurchase of treasury stock fromaffiliates accounted for by equity
methodChange in equity in affiliates
accounted for by equity
method-treasury stock
Sales of treasury stock from
Employee Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period

5,710(549,252)(3,151,460)(3,151,460)

76,97982,68976,979(90,003)(90,003)
421,017
170,008

421,017421,017

170,008

170,008—(84,293)3,300,569(2,104,210)(379,244)(2,483,455)

732,820

2,486,520

18,146,513

29,958,714(5,289,702)(478,595)(5,768,298)

44,823,450(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Cumulative effects ofchanges in accounting
policies
Restated balance
Changes of items during
the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasurystock
Net changes incommission forpurchase of treasury
stock from affiliates
accounted for byequity method
Change in equity inaffiliates accounted
for by equity
method-treasury stock
Sales of treasury stockfrom Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeSubscrip-tion
rights tosharesTotal net
assets1,481,757

13,339(233,476)

85,054(37,476)

1,309,198

43,31145,418,210
24,928

1,481,757

13,339(233,476)

85,054(37,476)

1,309,198

43,31145,443,139(976,612)
4,277,182(3,151,460)
82,689(90,003)

421,017
170,008(671,232)(48,320)

75,412(3,887)(315,894)(963,922)

25,786(938,136)(671,232)(48,320)

75,412(3,887)(315,894)(963,922)

25,786(205,315)

810,524(34,981)(158,063)

81,167(353,371)

345,275

69,09745,237,823― 14 ―

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal 2014

Fiscal 2015

(March 1, 2014 to(March 1, 2015 toFebruary 28, 2015)

February 29, 2016)

Cash Flows from Operating Activities:
Net Income before income taxes

5,986,822

6,728,161

Depreciation and amortization

1,135,407

1,191,512

Impairment loss

291,939

227,936

Amortization of goodwill

496,504

496,504

Increase (decrease) in allowance for doubtful accounts(460,675)

1,845

Increase (decrease) in provision for bonuses(70,041)

172,463

Increase (decrease) in net defined benefit liability

1,502,819

115,449

Increase (decrease) in other provision

43,26462,489Interest and dividends income(89,091)(103,424)

1,714

801

Interest expenses
Equity in (earnings) losses of affiliates(463,052)(481,960)

Foreign exchange losses (gains)(2,022)(2,245)

Loss (gain) on sales of noncurrent assets(39,657)(106)―(64,675)

Loss (gain) on sales of investment securities
Loss (gain) on sales of real estate for investment―(67,060)

Loss (gain) on liquidation of subsidiaries and affiliates’ stocks(104,118)―

Decrease (increase) in notes and accounts receivable ― trade(497,679)(217,696)

Decrease (increase) in inventories(741,862)(88,298)

Increase (decrease) in notes and accounts payable ― trade(348,193)

119,541

Increase (decrease) in accrued consumption taxes

344,900(65,483)

Increase (decrease) in advances received(151,839)

38,995―(549,568)

Decrease (increase) in other assets(69,996)(4,060)

Increase (decrease) in other liabilities(387,319)

86,849Subtotal

6,377,821

7,597,973

Interest and dividends income received

204,415

225,308

Interest expenses paid

(1,714)(801)

Income taxes paid

(2,250,920)(2,502,657)

Net cash provided by (used in) operating activities

4,329,603

5,319,822

Increase (decrease) in accounts payable - other― 15 ―

(Thousands of yen)
Fiscal 2014

Fiscal 2015

(March 1, 2014 to(March 1, 2015 toFebruary 28, 2015)

February 29, 2016)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment(1,590,069)(1,063,206)

Proceeds from sales of property, plant and equipment

62,000

3,831

Purchase of intangible assets(53,944)(12,810)Purchase of securities(500,000)―

Proceeds from redemption of securities

1,900,000

150,000

Purchase of investment securities(1,216,996)(17,724)―352,250

Proceeds from sales of real estate for investment―

296,370

Payments of long-term loans receivable

Proceeds from sales of investment securities(7,774)(6,177)

Collection of long-term loans receivable

8,083

10,327Purchase of long-term prepaid expenses(46,044)(209,566)

Proceeds from liquidation of subsidiaries and affiliates’ stocks

104,118―

Other payments(241,595)(313,088)

Other proceeds

397,469

264,403(1,184,752)(545,390)

Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:
Proceeds from long-term loans payable―

549,800

Repayment of long-term loans payable(102,620)(119,300)(2,083,827)(3,151,460)

62,98569,243

Cash dividends paid

(957,168)(976,612)

Other payments(217,816)(111,079)(3,298,446)(3,739,409)

13,114(2,111)

Net increase (decrease) in cash and cash equivalents(140,482)

1,032,910

Cash and cash equivalents at beginning of period

4,093,415

3,952,933

Cash and cash equivalents at end of period

3,952,933

4,985,844

Purchase of treasury stock
Proceeds from sales of treasury stock

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents― 16 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.
(Changes in Accounting Policies)(Application of the Accounting Standard for Retirement Benefits)
We have adopted the Accounting Standard for Retirement Benefits (ASBJ Statement No.26 issued on May 17,
2012; hereinafter, the “Accounting Standard for Retirement Benefits”) and the Guidance on AccountingStandard for Retirement Benefits (ASBJ Guidance No.25 issued on May 17, 2012; hereinafter, the “Guidanceon Accounting Standard for Retirement Benefits”) in accordance with the provisions of Article 35 of the
Accounting Standard for Retirement Benefits and those of Article 67 of the Guidance on Accounting Standard
for Retirement Benefits starting from the first quarter under review. We reviewed the calculation methods ofretirement benefit obligations and service costs, and changed the method of attributing all contributions overall periods to periods of service based on the benefit formula instead of on a straight-line basis, as well as themethod of determining a discount rate from the use of a discount rate based on the number of years similar tothat of the average remaining service period of employees to the use of a single weighted average discount ratethat reflects the estimated payment period of retirement benefits and the amount per that period.
We adopt these accounting standard and guidance in accordance with the transitional treatment specified
in Article 37 of the Accounting Standard for Retirement Benefits. Amounts occurred due to such changes incalculation methods are recognized by adding to or deducting from retained earnings at the beginning of the
fiscal year under review.
As a result, net defined benefit asset at the beginning of the subject fiscal year under review increased¥8,991 thousand, net defined benefit liability decreased ¥28,409 thousand, and retained earnings increased¥24,928 thousand. The effect of this change on the Company’s consolidated profit and loss in the fiscal year
under review is negligible.
(Application of Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc.
through Trusts)
The “Practical Solution on Transactions of Delivering the Company’s Own Stock to Employees etc. throughTrusts” (ASBJ PITF No. 30, December 25, 2013) was applied effective the first quarter of fiscal 2015. With
respect to the accounting treatment of trust contracts that were entered into before the beginning of the firstyear of the application of the above practical report, the method adopted in the past will continue to be applied.
Accordingly, the application of the above practical report has no effect on the consolidated quarterly financial
statements.

(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofmanagement resources and evaluate business results.

2. Information concerning changes to reporting segments, etc.
The YONDOSHI HOLDINGS Group had previously classified its reporting segments as “F.D.C.
Products Group,” “AS’TY Group,” “MISUZU,” and “age,” based on the respective businesscompanies. In recent years, the brand SPA (Specialty store retailer of Private label Apparel) businesscentered on 4°C brand jewelry has come to comprise a larger proportion of the corporate group, andwith the idea of evolving into a company closer to customers, from the first quarter of the subject
fiscal year we have changed the classifications to two segments, the “Jewelry Business” and“Apparel Business,” based on principle products handled.
Accordingly, the former “F.D.C. Products Group” has been changed to “Jewelry Business,” and“The AS’TY Group,” “MISUZU,” and “age” consolidated as “Apparel Business.”
Comparative segment information between the fiscal year ended February 29, 2016 and theprevious fiscal year is provided on a revised reporting segment basis.

― 17 ―

3. Calculation Methods for Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
The accounting treatment methods for reporting segments are generally the same as those adopted for
preparing consolidated financial statements. Profits for reporting segments are operating income amounts.
Intrasegment sales and transfers are based on current market prices.
4. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

28,537,113

22,189,153

50,726,266―

50,726,266

50,3301,963,836

2,014,167(2,014,167)

―

Total

28,587,444

24,152,989

52,740,434(2,014,167)

50,726,266

Segment income

4,980,999

522,647

5,503,646(35,744)5,467,901

Segment assets

27,873,136

24,865,987

52,739,123

7,838,776

60,577,900

651,483

450,034

1,101,518

27,8281,129,346

1,209,843

466,418

1,676,261―

1,676,261

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Notes:
1. (1) The adjustment amount of minus ¥35,744 thousand for segment income mainly includes amortization of goodwill
totaling minus ¥496,504 thousand and general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥598,882 thousand.
(2) The adjustment amount of ¥7,838,776 thousand for segment assets is mainly comprised of corporate assets of¥4,322,025 thousand and the balance of unamortized goodwill of ¥5,709,806 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥27,828 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
2.
Segment income matches operating income recorded on the consolidated statements of income.

― 18 ―

Fiscal 2015, the Fiscal Year Ended February 29, 2016 (March 1, 2015 to February 29, 2016)(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

31,880,339

21,003,300

52,883,639―

52,883,639

45,854

982,822

1,028,676(1,028,676)

―

Total

31,926,194

21,986,122

53,912,316(1,028,676)

52,883,639

Segment income

5,831,333

188,655

6,019,989

94,001

6,113,990

Segment assets

30,987,456

23,769,027

54,756,483

5,819,825

60,576,308

726,157

446,166

1,172,323

26,626

1,198,949

1,000,689

450,180

1,450,870

82,6001,533,470

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Notes:
1. (1) The adjustment amount of ¥94,001 thousand for segment income mainly includes amortization of goodwill totaling
minus ¥496,504 thousand and general administrative expenses that are not attributable to individual reporting segments
amounting to minus ¥577,157 thousand.
(2) The adjustment amount of ¥5,819,825 thousand for segment assets is mainly comprised of corporate assets of¥5,460,739 thousand and the balance of unamortized goodwill of ¥5,213,301 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥26,626 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
(4) The adjustment amount of ¥82,600 thousand for the increased amount of property, plant and equipment and intangible
assets relates to corporate assets that are not attributable to individual reporting segments.
2. Segment income matches operating income recorded on the consolidated statements of income.

(Related Information)
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Information
i. Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.
ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’s property, plant and equipment in the consolidated balance sheets, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

― 19 ―

Fiscal 2015, the Fiscal Year Ended February 29, 2016 (March 1, 2015 to February 29, 2016)
1. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

2. Geographical Segment Information
i. Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.
ii. Property, plant and equipment
As the total of property, plant and equipment based in Japan of all business segments represented over 90% of
the Company’s property, plant and equipment in the consolidated balance sheets, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)(Thousands of yen)
Reporting Segments
Jewelry BusinessImpairment loss

236,048

Apparel Business

Adjustment
amountTotal

55,890―291,939

Total

291,939

Fiscal 2015, the Fiscal Year Ended February 29, 2016 (March 1, 2015 to February 29, 2016)(Thousands of yen)
Reporting Segments
Jewelry BusinessImpairment loss

107,273

Apparel Business
120,663

Adjustment
amountTotal
227,936―

Total

227,936(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496,504 thousand and ¥5,709,806 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2015, the Fiscal Year Ended February 29, 2016 (March 1, 2015 to February 29, 2016)
There were no amounts of goodwill amortized or balance of unamortized goodwill allocated to reporting
segments. The amounts of goodwill amortized and balance of unamortized goodwill not allocated to reporting
segments were ¥496,504 thousand and ¥5,213,302 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.

― 20 ―

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2014, the Fiscal Year Ended February 28, 2015 (March 1, 2014 to February 28, 2015)
Not applicable.
Fiscal 2015, the Fiscal Year Ended February 29, 2016 (March 1, 2015 to February 29, 2016)
Not applicable.

(Additional Information)(Change in Presentation Method)
Through the third quarter cumulative period of the previous fiscal year, “net sales” and “other operating
revenue” was presented individually. However, because of a decline in the materiality of “other operating
revenue” with regard to consolidated results, from the first quarter of the subject fiscal year, this item ispresented included in “net sales.”Consolidated quarterly financial statements for the third quarter cumulative period of the previous fiscal
year have been recombined to reflect this change in the presentation method. As a result, the ¥642,757 million
presented as “other operating revenue” in the Consolidated Statements of Income for the third quarter
cumulative period of the previous fiscal year has been recombined as “net sales.”(Note Concerning the Correction of an Error)
Certain improprieties in past fiscal year accounts of a subsidiary of Fuji Co., Ltd., a YONDOSHI HOLDINGS
affiliated company accounted for by the equity method, were uncovered during the fiscal year under review. As
a result, adjustments were made to past fiscal year equity in the earnings and losses of affiliates and thecumulative effects of these adjustments reflected in the book value of net assets as of the beginning of the
fiscal year ended February 29, 2016. Taking into consideration the aforementioned, the balances of capitalsurplus and valuation difference on available-for-sale securities increased ¥4,100 thousand and ¥5 thousand,respectively, and the balance of retained earnings decreased ¥416,545 thousand as of the beginning of theperiod after retroactively adjusting consolidated statements of changes in net assets.

― 21 ―

(Per Share Information)(Yen)
Fiscal 2014
(March 1, 2014 to February 28, 2015)

1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

Fiscal 2015
(March 1, 2015 to February 29, 2016)

1,707.15
133.90133.691.
2.
3.

1,747.62
163.22
162.92

Net assets per share
Earnings per share
Net income per share (diluted)

Note: The basis for calculating earnings per share and net income per diluted share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2014
(March 1, 2014 to
February 28, 2015)

Total earnings per share
Net income
Net income applicable to shareholders of common stock
Net income applicable to common stock
Average number of common shares (Shares)

Net income per share adjusted for diluted shares
Adjustment to net income per share
Increased number of common shares (Shares)(Subscription rights to shares)
Description of the diluted shares not included in the calculationof net income per share adjusted for diluted shares due to their
non-dilutive effect from the previous fiscal year

Fiscal 2015
(March 1, 2015 toFebruary 29, 2016)

3,612,100—
3,612,100
26,976,741

4,277,182—
4,277,182
26,205,718—
42,236(42,236)
New share subscription rights
issued on July 24, 2014
6th issuance of new sharesubscription rights
Common stock:36,700 shares—
47,932(47,932)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:
102,000 shares

New share subscription rights
issued on July 24, 2014
7th issuance of new sharesubscription rights
Common stock:24,800 shares

3. The basis for calculating net assets per share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2014
(March 1, 2014 to
February 28, 2015)

Total net asset recorded on consolidated balance sheets
Deduction amount of total net asset recorded on consolidatedbalance sheets
Subscription rights to shares
Net assets applicable to common stock
Number of common stock utilized for the calculation of net
assets per share (Shares)

Fiscal 2015
(March 1, 2015 toFebruary 29, 2016)

45,418,210

45,237,823

43,311

69,097(43,311)45,374,899(69,097)
45,168,726

26,579,278

25,845,932

4. The Company’s shares held by the trust-type employee ownership plan are recognized as treasury stock inconsolidated financial statements. As a result, the number of common shares as of the end of the period used to
calculate the aforementioned net assets per share amount as well as the average number of shares for the period used
to calculate the aforementioned earnings per share amount are after deducting the Company’s shares held by thetrust-type employee ownership plan.

(Important Subsequent Events)
Not applicable.

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5. Other(1) Changes in Managementi. Changes in representative director
Not applicable.
ii. Other management assignments
・ Newly appointed directors (audit/supervisory committee members) candidate
Masahiko Iwamori(Currently a director (excluding his position as audit/supervisorycommittee member))Toyomasa Akiyama(Currently a certified tax accountant at Tax Master Tax Office)Notes:
1. Mr. Iwamori is a candidate for the position of a standing head of audit/supervisory committee
members.
2. Mr. Akiyama is a candidate for the position of outside director.
・ Retiring directors (Audit/Supervisory Committee Members)
Eiji Tasaka
Nobuhiko Kamimura
Notes:
1. Mr. Tasaka is a standing head of audit/supervisory committee members.
2. Mr. Kamimura is an outside director.
iii. Scheduled date of appointment
May 19, 2016

― 23 ―