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

Investors’ Presentation
Results for the Fiscal 2017
(The Fiscal Year Ended February 28, 2018)
April 9, 2018

Contents
Ⅰ. Overview and Summary of Fiscal 2017, the Fiscal Year Ended February
28, 2018
Ⅱ. Management Priorities and Strategic Approach for Fiscal 2018, the Fiscal
Year Ending February 28, 2019
Ⅲ. Consolidated Business Results Forecasts for Fiscal 2018

Saishi Kimura. Chairman and Representative Director・CEO
Akihiro Takiguchi, President and Representative Director・COO
YONDOSHI HOLDINGS INC.
Note: Amounts identified in this report are presented in millions of yen rounded down. Percentage figures are calculated from raw data.

Disclaimer: Operating forecasts and forward-looking statements that are not of historic fact are based on information available
to management as of the date of this report. Subject to a variety of risks and uncertainties, these forecasts and forward-looking
statements may differ substantially from actual results due to a diversity of factors including changes in the Company’s
operating environment, market trends and fluctuations in foreign currency exchange rates. As a result, readers are advised not
to rely solely on the information provided as the basis for investment decisions.

2Overview of Consolidated Operating Results for
Fiscal 2017
Despite a decrease in revenue as well as downturns in operating income andordinary income for the first time in 10 and nine fiscal periods, respectively,
record high net income for a sixth consecutive fiscal year.
Net sales: ¥48,060 million (－3.5% YoY) Operating income: ¥6,102 million (－6.5% YoY)
Ordinary income: ¥7,562 million (－3.0% YoY) Net income: ¥5,293 million (+6.7% YoY)
(Millions of yen)

Net sales
49,797

Operating income

Ordinary income

6,529

7,796

48,060

－3.5%

6,102

FY2016FY2017FY2016FY2017
第67期実績
第67期実績
第68期実績
Actual Results Actual
Results
ActualResults 第68期実績
Results Actual(Millions ofyen, %)

ActualResults

Plans(Revised)

4,962

5,293

＋6.7%

FY2016FY2017FY2016FY2017
第67期実績
第67期実績
第68期実績
第68期実績
Results Actual
Results
ActualResults Actual
Results Actual

FY2017 (2018/2)

(%)

7,562

－3.0%

－6.5%

FY2016 (2017/2)

Net income(%)

FY2017 (2018/2)
ActualResults(%)

YoY

vs. Plan

Increase(Decrease)(%)

Increase(Decrease)(%)

Net sales

49,797100.0

48,500100.0

48,060

100.0

－3.5

－0.9

Gross profit

29,34858.928,30058.3

28,049

58.4

－4.4

－3.4

Gross profit
margin58.9－0.5pt+0.1pt58.3

58.4

SG&A expenses

22,81845.8

22,15045.7

21,947

45.7

－0.9

－3.8

Operating income

6,529

13.1

6,150

12.7

6,102

12.7

－6.5

－0.8

Ordinary income

7,796

15.7

7,650

15.8

7,562

15.7

－3.0

－1.2

Net income

4,962

10.0

5,550

11.4

5,293

11.0

+6.7

－4.6

3

Operating income
Operating income: ¥6,102 million (－6.5% YoY) Operating income margin: 12.7% (－0.4pt YoY)

Cost of sales ratio
FY2016 FY 20167
41.1% ⇒ 41.6%+0.5pt(Millions of yen)

－ 1,737
6,529

SG&A expenses to net sales ratio
FY2016 FY 201745.8% ⇒ 45.7%－ 0.1pt

－ 871
－ 438

6,102

OperatingincomemarginOperatingincomemargin

13.1%

12.7%

Operating income

FY2016(2017/2)

Net sales

Cost of sales

SG&A expenses

Operating income

FY2017(2018/2)

4

Trends in Quarterly Business Results
Trends in Net Sales by Quarter
1Q(Millions of yen)

3Q

2Q

4Q
16,583

11,61812,672 12,306

'14/2

'15/2

'16/2

14,543 14,815
11,588 11,341

11,037 11,142 11,742 11,347 11,086

11,803 12,095 12,251 11,541 11,407

'17/2

'14/2

'14/2

'18/2

'15/2

'16/2

'17/2

'18/2

'15/2

'16/2

'17/2

'18/2

'14/2

'15/2

'16/2

Trends in Operating Income by Quarter
1Q

2Q

15,321'17/2

14,226'18/2(Millions of yen)

3Q

4Q
2,732 2,564 2,615
1,919

1,560
1,091

'14/2

'15/2

1,348

'16/2

(Millions of yen)

1,547

'17/2

1,341

'18/2

805

700

'14/2

'15/2

FY2016(2017/2)

855

'16/2

1,157 1,067

1,261
1,090 1,043 1,172
1,079

'17/2

'14/2

'18/2

'15/2

'16/2

'17/2

'18/2

'14/2

2,163

'15/2

'16/2

1Q
FY20172Q
FY20173Q
FY20174Q
FY2017FY2017(2018/2)

Increase /(Decrease)

'17/2

'18/2

YoY

Net sales

49,797

11,341

11,086

11,407

14,226

48,060(1,737)－3.5

Gross profit

29,348

6,607

6,376

6,611

8,455

28,049(1,298)－4.4

Operating income

6,529

1,341

1,067

1,079

2,615

6,102

(426)

－6.5

5

Overview of Business Results by Segment～The Jewelry Business Decrease in revenue and earnings owing mainly to a delay in the recoveryof bridal jewelry sales and a downturn in business results below plans
during the peak Christmas period(Millions of yen)

Net sales
33,166

Operating income
5,980

30,981

Ordinary income

Net income

6,073

3,823

5,598

5,470

3,749

－6.6%

－8.5%

－7.8%

－1.9%

FY2016FY2017
第67期実績
第68期実績
Actual Results Actual Results

FY2016FY2017
第67期実績
第68期実績
Actual Results Actual Results

FY2016FY2017
第67期実績
第68期実績
Actual Results Actual Results

FY2016FY2017
第67期実績
第68期実績
Actual Results Actual Results

FY2016 (2017/2)(Millions ofyen, %)

ActualResults

FY2017 (2018/2)

(%)

Plans

(%)

ActualResults(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

33,166100.0

31,300100.030,981

100.0

－6.6

－1.0

OperatingincomeOrdinary
income

5,980

18.0

5,600

17.9

5,470

17.7

－8.5

－2.3

6,073

18.3

5,700

18.2

5,598

18.1

－7.8

－1.8

Net income

3,823

11.5

3,850

12.3

3,749

12.1

－1.9

－2.6

6

Overview of Business Results by Segment～The Apparel Business Increase in revenue and upswing above plans at each level of profit Successful steps to strengthen measures with major clients utilizing productplanning capabilities and overseas production framework in the apparel
manufacturing business Increase in everyday fashion brand PALETTE existing stores sales for an eighthconsecutive fiscal year; opened eight new stores exceeding plans(Millions of yen)

Net sales
16,630Operating income

17,080Ordinary income

494+14.9%FY2016FY2017
Actual Results Actual Results

FY2016FY2017
Actual Results Actual Results

FY2016 (2017/2)

Net sales
OperatingincomeOrdinary
incomeNet income

ActualResults

526
396

+2.7%

(Millions ofyen, %)

817

751

566

Net income+8.9%+32.7%FY2016FY2017
Actual Results Actual Results

FY2016FY2017
Actual Results Actual Results

FY2017 (2018/2)
Plans

(%)

ActualResults

(%)

(%)

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

16,630100.0

17,200100.0

17,080

100.0

+2.7

－0.7

494

3.0

550

3.2

566

3.3

+14.9

+3.1

751

4.5

800

4.7

817

4.8

+8.9

+2.1

396

2.4

500

2.9

526

3.1

+32.7

+5.2

7

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net assets stood at ¥66.3 billion, ¥12.9 billion,and ¥53.3 billion, respectively
 Cash flows from financing activities: Paid cash dividend of approximately¥1.5 billion as a part of efforts to return profits to shareholders
Financial Position

Cash Flows
As of February 28, 2018

Total assets¥66.3 billion¥53.3 billion

Total liabilities Total net assets¥ 12.9 billion

FY2016(2017/2)

FY2017(2018/2)

Increase(Decrease)

Operatingcash flows

4,964

5,427

+462

Investingcash flows(2,347)(3,023)(675)

Financing
cash flows(2,305)(1,665)+639

Freecash flows

2,616

2,403

(212)

(Millions of yen)8

Overview of Capital Investment as well as Depreciation
and Amortization (Consolidated)
Capital investment: ¥1.23 billion

Depreciation and amortization: ¥1.18 billion

FY2016 (2017/2)

FY2017 (2018/2)
YoY(Millions of yen, %)Actual Results

Actual Results

Capital investment(including long-term
prepaid expenses)(cash flow basis)

952

1,230

FY2016 (2017/2)

FY2017 (2018/2)
YoY(Millions of yen, %)Actual Results

Depreciation andamortization

+278

1,185

Actual Results

1,116

(69)
9

Status of Store Openings
 Net increase of two stores in the Jewelry Business and four stores in the ApparelBusiness From an overseas perspective, steps taken to temporarily review store opening
plans and to focus on test marketing
ApparelBusiness

Jewelry BusinessJapan

FY2016(2017/2)

FY2017
ActualResults(2018/2)

Total
Overseas

PALETTE

215

7

61

283

12

24

1

8

33

1

9

22

3

4

29

43

90

217

5

65

287

Roadsidebutique

Department
store

Bridal Shop

Fashion
Building

Fiscalyearend

5

86

37

87

Storesopened05※7Storesclosed0

12

Fiscalyearend

5

79

Total

* The seven bridal store openings represent certain 4ºC stores that are separated into 4ºC and 4ºC BRIDAL specialty stores.

10

Status of the Number of Domestic Brand Stores in the
Jewelry Business Decrease in the number of domestic brand stores following a review of store
categories with the aim of showcasing the unique and distinct identity of 4ºC
BRIDAL specialty stores Terminated 4ºC bag operations as of the end of February; consolidated bag andleather accessory sales into Luria 4ºC
4ºC

4ºC

FY2016(2017/2)

FY2017
ActualResults(2018/2)

BRIDAL

canal
4ºC

Other*1

Jewelry
Total

4ºC bags

Luria
4ºC

Bag
Total

Total

Fiscalyear-end

92

49

48

30

219

49

33

82

301

Storesopened

5

7

2

6

20

1

34

35

55

Storesclosed

5

13

2

6

26

50

6

56

82

Fiscalyear-end

92

43

48

30

213

0

61

61

274

*1. Other: EAUDOUCE 4ºC, RUGIADA, MAISON JEWELL, deux et deux
*2. Composite stores that handle multiple brands are recorded as a single store by each individual brand.

11

Return of Profits to Shareholders
 Increase dividends in line with profits; maintain a flexible approach toward
the acquisition of treasury stock Plan to pay a cash dividend of ¥65 per share, up ¥15 per share, for the fiscal year
ended February 28, 2018 (seventh consecutive fiscal year of dividend increase) Dividend payout ratio for the fiscal year ended February 28, 2018: 31.4%, up 5.5
percentage points YoY
Expected to achieve the medium-term goal of securing a dividend payout ratio of 30%(%)(Millions of yen)

5,293 31.4

6,000

4,962

5,000

30.0

4,277

4,000

28.0

25.9

3,000

1,070

1,000

Net income (left scale)

26.0

24.5

2,000

32.0

1,713

1,318

Total dividends (left scale)

24.0

Payout ratio (right scale)

22.0

0

20.0
FY2015 (2016/2)

FY2016 (2017/2)

FY2017 (2018/2)

FY2015 (2016/2)

FY2016 (2017/2)

FY2017 (2018/2)

Annual dividends per share (Yen)

40.0

50.0

65.0

Net income per share (Yen)

163.22

193.38207.09

24.5

25.9

31.4

Payout ratio (%)

12Summary of Fiscal 2017
 Decrease in revenue; downturn in operating income an ordinary income forthe first time in 10 and nine fiscal periods, respectively; increase in net income
for a tenth consecutive fiscal year and a record high for a sixth consecutive
fiscal year owing to the incidence of extraordinary income
 Jewelry Business: Delay in a recovery in bridal jewelry sales as well as a dropin net sales and profit below plans due to a variety of factors including difficult
conditions throughout the peak Christmas season
 Apparel Business: Successful steps to strengthen relationships with majorclients in the apparel manufacturing business; robust trends and increase ineveryday fashion brand PALETTE existing stores sales for an eighthconsecutive fiscal year Increase in the level of returns to shareholders; expected to achieve a dividend
payout ratio of 30% or more following an increase in dividends for a seventh
consecutive fiscal period

Clarify issued to be addressed in order to secure further growth
13

Contents
Ⅰ. Overview and Summary of Fiscal 2017, the Fiscal Year Ended February
28, 2018
Ⅱ. Management Priorities and Strategic Approach for Fiscal 2018, the Fiscal
Year Ending February 28, 2019
Ⅲ. Consolidated Business Results Forecasts for Fiscal 2018

Analysis of Issues in the Jewelry Business

Issue

Substantial drop in 4ºC bridal jewelry sales
marketed mainly through department stores

Reinforce personnel and put in place mechanisms with theaim of establishing a new structure from March 2018 in orderto bring about a recovery in 4ºC bridal jewelry sales

15

Management Priorities and Strategic Approach (1)Issue of the utmost priority: Return the Jewelry Business to a growth trajectory (1)Management
Priority

Declining
existing store
sales (SSS)

Strategic Approach

Measures

Increase the value of the 4ºC
jewelry brandUndertake renewal work with a view toestablishing new prototype stores
Strengthen the lineup of mid- and highpriced fashion jewelry
Enhance the images of brands bystrengthening sales and promotion
initiatives

Increase the competitiveness of
4ºC bridal jewelry

Upgrade and expand bridal fairs
Look at products and services that cangenerate new added value

Secure competitive advantage
as a 4ºC BRIDAL specialty
store

Promote stable canal 4ºC
growthFurther strengthen the competitivenessof products
Enhance customer service and raise thelevel of customer satisfaction
Promote measures aimed at attracting
customers and increasing purchasesEnsure stable growth by expanding thenumber of customers
Strengthen the competitiveness of
fashion jewelry productsUndertake renewal work with a view toestablishing new prototype stores
16

Management Priorities and Strategic Approach (2)Issue of the utmost priority: Return the Jewelry Business to a growth trajectory (2)Management
Priority

Developgrowthbusinesses

Strategic Approach

Measures

Strengthen the composition of
Luria 4ºC products

Upgrade and expand the product mix byincreasing the lineup of bags
Rebuild purse/wallet and leather
accessory merchandising

Expand the e-commercebusinessImplement a variety of measures aimed
at further expanding sales
Upgrade and expand sales andpromotion activities as well as customer
service

Establish a suburban shopping
center market model through
MAISON JEWELL

Rebuild merchandising as a suburbantype shopping center market model
Undertake the opening of stores that will
help generate definitive growth in thenext fiscal period and expand sales per
store

17

Management Priorities and Strategic Approach (3)Promote stable Apparel Business growthManagement
Priority

Apparelmanufacturingbusiness:
Clarify growthbusiness
strengths

Strategic Approach

Bring growth businesses tofruition and continue toundertake investments aimed atpromoting stable growthEverydayfashionbusiness:
Expand awareness toward the
Further expand PALETTE brandthe PALETTE
brand

MeasuresStrengthen initiatives with clients
drawing on the strengths of productplanning capabilities and overseas
production framework
Establish competitive advantage bycapitalizing on inherent strengths
Further entrench the Group’s dominantposition in the Kansai area bycontinuing to open PALETTE stores
Expand existing stores sales bystrengthening sales and promotion
measures as well as increasing thenumber of PALETTE members
Increase price competitiveness18

Jewelry Business：Increase the value of the 4ºC
jewelry brand Undertake renewal work with a view to establishing new prototype stores
 Strengthen the lineup of mid- and high-priced fashion jewelry
 Enhance the images of brands by strengthening sales and promotion initiatives

4ºC Takasaki Takashimaya Store (new prototype)19

Jewelry Business：Increase the competitiveness of
4ºC bridal jewelry Upgrade and expand bridal fairs
 Look at products and services that can generate new added value

4ºC BRIDAL Ring

20

Jewelry Business：Secure competitive advantage as a
4ºC BRIDAL specialty store Further strengthen the competitiveness of products
 Enhance customer service and raise the level of customer satisfaction
 Promote measures aimed at attracting customers and increasing purchases

4ºC BRIDAL Ginza Main Store

4ºC AQUANITY Collection21Jewelry Business：Promote stable canal 4ºC growth Ensure stable growth by expanding the number of customers
 Strengthen the competitiveness of fashion jewelry products
 Undertake renewal work with a view to establishing new prototype stores

canal 4ºC

New presentation prototype

22

Jewelry Business：Strengthen the composition of
Luria 4ºC products
 Rebuild purse/wallet and leather accessory merchandising Upgrade and expand the product mix by increasing the lineup of bags

Luria 4ºC

23

Jewelry Business：Expand the e-commerce business Implement a variety of measures aimed at further expanding sales Upgrade and expand sales and promotion activities as well as customer service
E-commerce business sales
1,950(Millions of yen)

1,643
1,545

1,184

845
679
550
FY2012 (2013/2) FY2013 (2014/2) FY2014 (2015/2) FY2015 (2016/2) FY2016 (2017/2) FY2017 (2018/2) FY2018 (2019/2)
Plan

24

Jewelry Business：Establish a suburban shopping center
market model through MAISON JEWELL
 Rebuild merchandising as a suburban-type shopping center market model Undertake the opening of stores that will help generate definitive growth in thenext fiscal period and expand sales per store

MAISON JEWELL Kurashiki StoreMAISON JEWELL bridal ring25

Apparel Business ：Bring growth businesses to fruition andcontinue to undertake investments aimed at promoting
stable growth in Apparel manufacturing business Strengthen initiatives with clients drawing on the strengths of product planningcapabilities and overseas production framework
 Establish competitive advantage by capitalizing on inherent strengths

AS’TY Inc. exhibition

26

Apparel Business：Expand awareness toward the PALETTE
brand Further entrench the Group’s dominant position in the Kansai area by continuing to open
PALETTE stores Expand existing stores sales by strengthening sales and promotion measures as well as
increasing the number of PALETTE members
 Increase price competitiveness

PALETTE Safa Store 27

Contents
Ⅰ. Overview and Summary of Fiscal 2017, the Fiscal Year Ended February
28, 2018
Ⅱ. Management Priorities and Strategic Approach for Fiscal 2018, the Fiscal
Year Ending February 28, 2019
Ⅲ. Consolidated Business Results Forecasts for Fiscal 2018

Consolidated Business Results Forecasts for Fiscal 2018
Target increases in revenue and earnings on a consolidated basis as well asa seventh consecutive fiscal year of record high net income.
Net sales: ¥49,000 million (+2.0% YoY) Operating income: ¥ 6,150 million (+0.8% YoY)
Ordinary income:¥ 7,650 million (+1.2% YoY) Net income : ¥ 5,350 million (+1.1% YoY)
(Millions of yen)

Net sales
51,500Operating 6,550
income49,0006,150

48,0606,102

Ordinary income
7,700
7,561

Net income
4,950

7,650

5,293

5,350

+2.0%

+0.8%

+1.2%

+1.1%

FY2017FY2018 Plan
Actual Results

FY2017FY2018 Plan
Actual Results

FY2017FY2018 Plan
Actual Results

FY2017FY2018 Plan
Actual Results

FY2017 (2018/2) Results(Millions of yen, %)Results

FY2018 (2019/2) Plan(%)

Full-year

YoY(%)

Increase (Decrease)(%)

Net sales

48,060100.0

49,000

100.0

+2.0

Gross profit

28,04958.4

28,93259.0+3.1

Gross profit margin

59.0

58.4

+0.6ptSelling, general andadministrative expenses

21,94745.7

22,78246.5+3.8

Operating income

6,102

12.7

6,150

12.6

+0.8

Ordinary income

7,561

15.7

7,650

15.6

+1.2

Net income

5,293

11.0

5,350

10.9

+1.1

29

Outlook for Operating Income
Anticipating an increase in selling, general and administrative expenses due to suchfactors as the implementation of TV commercials and investments in personnel
including wage hikes
Cost of sales ratio
FY2017 FY 2018 (Forecast)
41.6% ⇒ 41.0%－0.6pt(Millions of yen)

+940

+57

SG&A expenses to net sales ratio
FY2017 FY 2018 (Forecast)
45.7% ⇒ 46.5%+0.8pt

+835

6,102

6,150

OperatingincomemarginOperatingincomemargin
12.6%

12.7%

Operating income
FY2017(2018/2)

Net sales

Cost of sales

SG&A expenses Operating income
FY2018
Forecast(2019/2)

30

Consolidated Business Results Forecasts by Segment
for Fiscal 2018 (Figures are after accounting for intrasegment net sales and transfers)
 The Jewelry Business is expected to implement measures aimed at triggeringa recovery in existing store sales
 The Apparel Business is projected to report increases in both revenue andearnings on the back of stable growth
FY2017(2018/2)(Millions of yen, %)FY2018 (2019/2)

Results

The Jewelry
Business

The ApparelBusiness

Forecast

YoY

Net sales

30,981

31,700+2.3

Operating income

5,470

5,480

+0.2

Ordinary income

5,598

5,600

±0

Net income

3,749

3,790

+1.1

Net sales

17,08017,720+3.7

Operating income

566

760

+34.1

Ordinary income

817

1,010

+23.7

Net income

526

640

+21.7

31

Plans for Store Openings and Closures Plans to open four stores and close six stores on a scrap and build basis in the
Jewelry Business Plans to open five PALETTE stores in the Apparel BusinessApparelBusiness

Jewelry Business
Japan
Roadsidebutique

FY2017
ActualResults(2018/2)

FY2018
Forecast(2019/2)

Total

Department
store

Bridal Shop

Fashion
Building

Overseas

PALETTE

Total

Fiscalyearend

5

79

43

90

217

5

65

287

Storesopened

0

2

0

2

4

0

5

9

Storesclosed

0

4

1

1

6

1

0

7

Fiscalyearend

5

77

42

91

215

4

70

289
32

Plans for the Number of Domestic Brand Storesin the Jewelry Business Targeting an increase in sales per store by implementing a scrap and build
measures
4ºC

FY2017
ActualResults(2018/2)

FY2018
Forecast(2019/2)

4ºC
BRIDAL

canal 4ºC

EAU
DOUCE
4ºC

MAISONJEWELL

Jewelry
Total

Luria 4ºC

Total

Fiscalyear-end

92

43

48

23

7

213

61

274

Storesopened

3

0

2

0

1

6

0

6

Storesclosed

3

0

2

0

0

5

3

8

Fiscalyear-end

92

43

48

23

8

214

58

272

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

33

We kindly request that you direct all inquiries regarding this document and investor relations
in general to the following point of contact:

YONDOSHI HOLDINGS INC.
Corporate Planning Division (Kozuka)
TEL+81-3-5719-3429
FAX+81-3-5719-4462
E-mail ir-yondoshi@yondoshi.co.jp

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