CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 29, 2020
(March 1, 2019 to August 31, 2019)
October 7, 2019
YONDOSHI HOLDINGS INC. is listed on the First Section of the Tokyo Stock Exchange under the securities code
number 8008.
Representative:
Inquiries:

Saishi Kimura, Chairman and Representative Director, CEO
Masahiko Nishimura, Director and Executive Officer responsible for Finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 10, 2019
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes (for analysts and institutional investors)
Dividend payment commencement date (planned): November 8, 2019
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2019
(March 1, 2019 to August 31, 2019)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Profit attributable to
Net sales
Operating Income
Ordinary Income
owners of parent％

Millions of yen

FY2019 First Half
FY2018 First Half

21,925

Note: Comprehensive income

Millions of yen

(0.8)

2,195

％

Millions of yen％

Millions of yen

％

10.1

2,370

(8.0)

1,484

(18.3)

2,578(15.4)

1,817(16.0)

22,094(1.5)
1,994(17.2)FY2019 First Half: 906 million yen (-37.9%)
FY2018 First Half: 1,459 million yen (-37.8%)
Net Income
per Share

FY2019 First Half
FY2018 First Half

Net Income per
Share after Dilution
Yen

Yen

66.10

66.10

70.78
70.74
(Reference) Operating income before the amortization of goodwill:
FY 2019 First Half: ¥2,443 million
FY 2018 First Half: ¥2,243 million
The Company considers operating income before the amortization of goodwill to be an important management indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets

Millions of yen

August 31, 2019
February 28, 2019

Net Assets to Total
AssetsMillions of yen

55,20840,625Net Assets per Share

%

Yen

73.4

1,855.69

60,284
43,58772.2
1,883.28(Reference)Shareholders’ equity: August 31, 2019: 40,547 million yen
February 28, 2019: 43,497 million yen
Note: YONDOSHI HOLDINGS has applied the “Partial Amendments to Accounting Standard for Tax Effect Accounting”
Statement No. 28 issued by the Accounting Standards Board of Japan (ASBJ) on February 16, 2018 effective from the start of
the first quarter of the fiscal year under review. Data relating to the Company’s financial position as of the previous fiscal
year is presented after retroactively adjusting figures in accordance with the above.

2. Dividends
Dividends per Share
(Record Date)

End of 1Q

End of 2Q
Yen

End of 3Q
Yen

AnnualYear-end
Yen

Yen

Fiscal 2018
—
37.50
—
37.50
Fiscal 2019—
40.00
Fiscal 2019—
40.00
(Forecast)
Note: Revision to dividend forecast for the second quarter of the fiscal year ending February 28, 2020: No

-1-

Yen

75.00
80.00

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 29, 2020
(March 1, 2019 to February 29, 2020)(% figures for the full fiscal year represent year-on-year increase or decrease)
Profit attributable to
Net Income
Operating Income
Ordinary Income
owners of parent
per Share

Net Sales
Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

Fiscal year
ending47,300
0.4
5,100
2.3
5,400 (20.6)
3,400
39.3
151.41February 29,2020
Note: Revisions to consolidated operating forecasts for the second quarter of the fiscal year ending February 28, 2020: No(Reference) EPS before the amortization of goodwill, taking into account the upper limit for share buy-backs in FY 2019, is¥174.10.

Notes(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: No(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: No
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 theperiod-end:
August 31, 2019: 29,331,356 sharesFeb. 28, 2019: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2019: 7,480,886 sharesFeb. 28, 2019: 6,234,634 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2019 First Half: 22,455,182 shares
FY2018 First Half: 25,679,174 shares
Note: The number of recorded treasury stock includes 41,000 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust (hereinafter referred to the “the Trust”)
and 45,353 of the Company’ shares held by the Shares Grant Trust for Officers as of the end of the second
quarter 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 are
based on management’s assumptions and beliefs that are determined to be reasonable in light ofcurrently available information, YONDOSHI HOLDINGS INC. cautions readers that due to a variety
of factors actual results may differ materially from forecasts. For the assumptions that underpin
operating results forecasts as well as cautionary notes on the use of operating results forecasts, pleaserefer to “1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated
Results Forecasts and Other Future Predictions” on page 5.
2.

The Company had previously presented its consolidated quarterly financial statements in units ofthousands of yen, but from the first quarter period of FY 2019 and the first quarter cumulative periodof FY 2019, the Company has changed the unit to millions of yen. Meanwhile, figures from theprevious consolidated fiscal year and the previous consolidated second quarter cumulative period arealso presented in millions of yen to facilitate a comparison.

3.

The Company plans to hold a financial results briefing on October 7, 2019 (Monday) for institutional
investors and analysts. Presentation materials used that day will be posted to the Company’s website
promptly after the briefing.

-2-

Contents
1.

2.

Qualitative Information on Business and Financial Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

4(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income Second Quarter Cumulative

8

Consolidated Quarterly Statements of Comprehensive Income

9Second Quarter Cumulative(3)

Consolidated Quarterly Statements of Cash Flows

10

(4)

Notes to Consolidated Quarterly Financial Statements

12(Notes Regarding Going Concern Assumptions)

12(Notes Regarding Substantial Changes in Shareholders’ Equity)

12(Additional Information)

12(Segment Information)

14(Important Subsequent Events)

15

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first half (March 1, 2019 to August 31, 2019) of fiscal 2019, the fiscal year ending February
29, 2020 (March 1, 2019 to February 29, 2020), the Japanese economy recovered at a moderate pace on
improvement in employment conditions. However, the outlook remained clouded due to concerns as to
how the direction of trade issues will affect the global economy and other factors.
In the retail industry, despite signs of a modest improvement in personal consumption, businessconditions remained difficult, with continued budget-consciousness arising from uncertainty about the
future.
Under these circumstances, during fiscal 2019, the second year of the fifth medium-term
management plan, the YONDOSHI HOLDINGS Group continued to cultivate human resources, bolster
product capabilities, and assess market trends, with the aim of becoming a century-old company andbrand. Further, we practiced CSR-based management to establish a highly trusted corporate group, andworked 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 first half of the period under review amounted to ¥21,925 million (down
0.8% from the same period of the previous fiscal year), with operating income of ¥2,195 million (up10.1%). Because of the lack of equity in earnings of affiliates in the subject fiscal year, ordinary income
declined to ¥2,370 million (down 8.0%) and profit attributable to owners of parent to ¥1,484 million(down 18.3%). Despite this downturn in earnings, trends in operating income and ordinary income arerobust with results exceeding plans.
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group continued to implement various successful measures, with an increase inbridal jewelry. In addition, store earning capacity also increased on the back of efforts to scale backunprofitable locations.
As a result, net sales in the Jewelry Business segment amounted to ¥12,671 million (down 3.3%
from the same period of the previous fiscal year), with operating income of ¥1,815 million (up 4.8%).
Apparel Business
The AS’TY Group substantially improved its earning capacity through successful efforts to strengthen
measures with major clients, utilizing its product proposal capabilities and overseas production
framework. Retailer age Co., Ltd. also achieved gains from expanded openings of new locations for its
mainstay everyday fashion brand PALETTE, and proactive efforts to scale back logistics expenses.
As a result, net sales in the Apparel Business segment amounted to ¥9,254 million (up 3.0% from thesame period of the previous fiscal year), with operating income of ¥490 million (up 39.6%).
(2) Explanation of Financial Condition
Assets, Liabilities and Net Assets
Total assets at the end of the second quarter (August 31, 2019) of the fiscal year ending February 29,2020 amounted to ¥55,208 million, a decrease of ¥5,075 million from the end of the previous fiscal year
(February 28, 2019). This was due mainly decreases of ¥1,714 and ¥1,500 million in cash and deposits
as well as short-term investment securities, respectively. Total liabilities amounted to ¥14,583 million, adecrease of ¥2,113 million from the end of the previous fiscal year. This was due mainly to a decline of¥2,776 million in income taxes payable. Total net assets at the end of the subject period amounted to¥40,625 million, a decrease of ¥2,962 million from the end of the previous fiscal year. This was due
mainly to an increase of ¥2,995 million in treasury stock (decrease in net assets).
Cash Flows
Cash and cash equivalents as of the end of the second quarter of the fiscal year under review stood at¥535 million, a decrease of ¥4,731 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥405 million, down ¥825 million compared with-4-

the corresponding period of the previous fiscal year. While the major cash inflow came from income
before income taxes, this was more than offset by the principal cash outflow of income taxes paid.
(Cash Flows from Investing Activities)
Net cash provided by investing activities totaled ¥23 million, a turnaround of ¥1,043 million year on
year. This turnaround was largely due to the principal cash inflow attributable to proceeds from sales ofinvestment securities.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥3,640 million, down ¥2,672 million compared with thecorresponding period of the previous fiscal year. This mainly reflected outflows for the purchase oftreasury stock.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 10, 2019.

-5-

2. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Millions of yen)

ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Short-term investment securities
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
Total property, plant and equipment

End of the Fiscal Year Ended
February 28, 2019
(As of February 28, 2019)

End of the Second Quarter of
the Fiscal Year Ending
February 29, 2020
(As of August 31, 2019)

2,249
2,854
1,500
8,508
702
918
3,166
(3)

535
3,718
8,355
557
1,145
2,261
(4)

19,895

16,569

5,475
5,492
659

5,310
5,492
681

―

11,627

11,483

Intangible assets:
Goodwill
Other intangible assets

3,723
200

3,475
211

Total intangible assets

3,923

3,687

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

19,331
590
5,015
(98)

18,055
610
4,853
(50)

Total investments and other assets

24,83823,468

Total noncurrent assets
Total assets-6-40,38938,63960,28455,208５．
（要約）四半期連結財務諸表(Millions of yen)
End of the Fiscal Year Ended
February 28, 2019
(As of February 28, 2019)

End of the Second Quarter of
the Fiscal Year Ending
February 29, 2020
(As of August 31, 2019)

3,582

3,462
214
8
20
2,724

3,614
400
123
686
213
24
21
3,234

10,013

8,318

175
43
507
1,040
4,917

―

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable
Current portion of long-term loans payable
Income taxes payable
Provision for bonuses
Provision for directors' bonuses
Asset retirement obligations
Other

―
―

Total current liabilities
Noncurrent liabilities:
Long-term loans payable
Provision for directors' retirement benefits
Net defined benefit liability
Asset retirement obligations
Other
Total noncurrent liabilities

56
497
1,032
4,677

6,683

6,265

Total liabilities

16,696

14,583

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

2,486
18,057
31,380(13,180)

2,486
18,06631,994(16,175)

38,74336,371Other 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

4,845
(1)
(161)
69
1

4,272
(9)
(161)
75
0

Total other accumulated comprehensive income

4,753

4,176

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

-7-

90

77

43,587

40,62560,28455,208

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2019
(March 1, 2018 toAugust 31, 2018)

First Half of the
Fiscal Year Ending
February 29, 2020
(March 1, 2019 toAugust 31, 2019)

Net sales
Cost of Sales

22,094
9,511

21,925
9,517

Gross profit

12,582

12,408Selling, general and administrative expenses

10,587

10,213Operating income

1,994

2,195
23
92

Foreign exchange gains
Other

20
52
423
36
14
38

Total non-operating income

587

199

0
2
0

0
2
0
6
7
5

Non-operating income
Interest income
Dividends received
Equity in earnings of affiliates
Rent of real estate for investment

Non-operating expenses
Interest expenses
Depreciation of real estate for investment
Management cost for real estate for investment
Foreign exchange losses
Commission for purchase of treasury shares
Other

―
―
0

Total non-operating expenses

―
36

―
46

4

24

2,578

2,370

193

99

193

99

123
8

86
16

Loss on valuation of investment securities―

159

Total extraordinary losses

131

262

Net income before income taxes

2,639

2,208

Income taxes ― current
Income taxes ― deferred

845
(23)

653
71

Ordinary income
Extraordinary income
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores

Total income taxes

822

724

Net income

1,817

1,484

Profit attributable to owners of parent

1,817

1,484

-8-

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2019
(March 1, 2018 toAugust 31, 2018)
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
Share of other comprehensive income of entities accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent-9-First Half of the
Fiscal Year Ending
February 29, 2020
(March 1, 2019 toAugust 31, 2019)
1,817

1,484

(357)
21
(14)
19

(573)
(8)
5
(1)

(27)

―

(357)
1,459

(577)
906

1,459

906

(3) Consolidated Quarterly Statements of Cash Flows(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2019
(March 1, 2018 toAugust 31, 2018)
Cash flows from operating activities:
Income before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in net defined benefit liability
Increase (decrease) in other provisionInterest and dividends income
Interest expenses
Equity in (earnings) losses of affiliates
Foreign exchange losses (gains)
Loss (gain) on valuation of investment securities
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Loss (gain) on sales of investment securities
Increase (decrease) in accounts payable―other
Increase (decrease) in advances received
Increase (decrease) in accounts payable ― other
Decrease (increase) in other assets
Increase (decrease) in other liabilities

First Half of the
Fiscal Year Ending
February 29, 2020
(March 1, 2019 toAugust 31, 2019)

2,639
530
123
248
(6)
(6)
(11)
(386)
(73)
0
(423)
(9)

2,208
477
86
248
(47)
(0)
(32)
42
(116)
0

―

―

12
159

(357)

(816)

(563)

67

(56)

32

(193)
(39)
(141)
117
57
339

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

Subtotal

1,787

2,215

Interest and dividends income received
Interest expenses paid
Income taxes paid
Income taxes refund

153
(0)
(961)
250

116
(0)
(4,787)
2,861

Net cash provided by (used in) operating activities

1,230

1,230,326- 10 -

(Millions of yen)First Half of the
Fiscal Year Ended
February 28, 2019
(March 1, 2018 toAugust 31, 2018)
Cash flows from investing activities:
Purchase of noncurrent assets
Proceeds from sales of noncurrent assets
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of long-term loans receivableCollection of long-term loans receivable
Purchase of long-term prepaid expenses
Other payments
Other proceeds

First Half of the
Fiscal Year Ending
February 29, 2020
(March 1, 2019 toAugust 31, 2019)

(281)
0
(15)
(2,510)
1,865
(0)
4
(7)
(114)
39

(345)

―
(36)
(6)
345

―
1
(29)
(89)
183

Net cash provided by (used in) investing activities(1,020)23

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

―
(57)
(0)
33
(859)
(84)

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

Net cash provided by (used in) financing activities(967)(3,640)(2)(2)

Net increase (decrease) in cash and cash equivalents(759)(3,214)

Cash and cash equivalents at beginning of period

6,026

3,749

Cash and cash equivalents at end of period

5,266

535

Effect of exchange rate changes on cash and cash equivalents- 11 -

(4) Notes to Consolidated Quarterly Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(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
to employees to increase medium- to long-term corporate value, conducting transactions to provide
Company stock to employees’ shareholding association through a trust.
i. Transaction summary
The Company established a trust with the beneficiaries as employees who participate in the
YONDOSHI HOLDINGS Employees’ Shareholding Association (“the Shareholding Association”)
and satisfy certain requirements. The trust acquires Company stock in an amount expected to be
procured by the Shareholding Association over a five-year period, and sells the shares to the
Shareholding Association on a fixed date each month. When the trust is concluded, if the trust has
earned a profit from a rise in the share price, the funds are distributed to the employee beneficiaries inproportion 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 ¥170 million, for 61,800 shares at the end of the previous consolidated
fiscal year, and ¥113 million, for 41,000 shares at the end of the second quarter of the subject
consolidated fiscal year.
iii. Book value of debt recorded through application of the gross method
At the end of the previous consolidated fiscal year: ¥175 million
At the end of the second quarter of the subject consolidated fiscal year: ¥123 million(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (excluding
directors who are audit and supervisory committee members) and directors who are audit andsupervisory committee members (excluding outside directors), as well as directors and corporate
auditors (excluding outside corporate auditors) of the Company’s major group companies from
November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible
companies in accordance with rules for granting trust-based stock compensation to corporate officers
as determined by the eligible companies. The Company will contribute funds to the trust, and the trust
will use these funds to acquire the Company’s shares, and grant them to eligible directors. In principle,
directors and other officers will receive the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at theirbook value in the Trust (excluding the amount of ancillary expenses). The book value and number ofshares of such treasury stock was ¥126 million, for 50,000 shares at the end of the previous
consolidated fiscal year, and ¥114 million, for 45,353 shares at the end of the second quarter of thesubject consolidated fiscal year.

- 12 -

(Application of “Partial Amendments to Accounting Standard for Tax Effect Accounting”)
From the subject fiscal year, the Company has applied “Partial Amendments to Accounting Standard
for Tax Effect Accounting” (ASBJ Statement No. 28, February 16, 2018). Deferred tax assets areshown in “Investments and other assets,” and deferred tax liabilities in “Non-current liabilities.”(Repurchase of the Company’s Own Shares)
YONDOSHI HOLDINGS resolved to repurchase the Company’s own shares pursuant to Article 156of the Corporations Law of Japan as applied under Article 165-3 of the said Corporations Law,following a meeting of its Board of Directors held on April 10, 2019.
1. Reasons for repurchasing the Company’s own sharesThis resolution was made to ensure that the Company maintained a flexible capital policy that is
capable of appropriately addressing changes in its operating environment and to facilitate theadequate return of profits to shareholders.
2. Repurchase details(1) Class of shares to be repurchased: YONDOSHI HOLDINGS’ common shares(2) Total number of shares to be repurchased: Up to a maximum of 1,350,000 shares(3) Aggregate cost of share repurchase: Up to a maximum of ¥3,500,000,000(4) Repurchase method: 1. Repurchase through the ToSTNeT-3 off-hours trading system
2. Market purchase based on a trust agreement relating to repurchase of theCompany’s own shares(5) Repurchase period: April 11, 2019 to September 30, 2019
Repurchase of the Company’s own shares was concluded as follows:(1) Class of shares repurchased
YONDOSHI HOLDINGS’ common shares(2) Total number of shares repurchased
1,350,000 shares(3) Total value of shares repurchased¥3,317,782,300(4) Period of acquisition
From April 11, 2019 to September 26, 2019- 13 -

(Segment Information)
Ⅰ The first half of the fiscal year ended February 28, 2019 (March 1, 2018 to August 31, 2018)
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

13,108

8,985

22,094―22,094

0

458

458

(458)

―

Total

13,1099,443

22,553(458)

22,094

Segment income

1,731

351

2,082

(87)

1,994

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥87 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments
amounting to minus ¥268 million and elimination of inter-segment transactions of ¥428 million. Corporate expenses areprimarily general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment(Major Impairment Loss Relating to Fixed Assets)
An impairment loss relating to fixed assets was posted in the Jewelry Business segment. The posted value of this
impairment loss during the second quarter of the fiscal year under review was ¥110 million.

Ⅱ The first half of the fiscal year ending February 28, 2020 (March 1, 2019 to August 31, 2019)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Millions of yen)
Reporting Segments

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

12,671

9,254

21,925―21,925

―

327

327

(327)

―

Total

12,671

9,581

22,253(327)

21,925

Segment income

1,815

490

2,305

(110)

2,195

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Notes:
1. The adjustment amount of minus ¥110 million for segment income mainly includes amortization of goodwill totaling
minus ¥248 million, general administrative expenses that are not attributable to individual reporting segments
amounting to minus ¥274 million and elimination of inter-segment transactions of ¥412 million. Corporate expenses areprimarily general administrative expenses not attributable to reporting segments.
2. Segment income figures have been adjusted to operating income on the consolidated quarterly income statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.

- 14 -(Important Subsequent Events)(Cancellation of Treasury Stock)
YONDOSHI HOLDINGS resolved to cancel treasury stock in accordance with the provision outlined
in Article 178 of Japan’s Corporations Law at a meeting of its Board of Directors held on October 7,
2019.
(1) Types of shares to be cancelled
YONDOSHI HOLDINGS’ common shares(2) Total number of shares to be cancelled 5,000,000 shares(17.05% of the total number of shares issued and outstanding prior to treasury stock cancellation)(3) Cancellation date
October 15, 2019- 15 -