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

The Sixth Medium-Term Management Plan
(The period from the fiscal year ending February 28, 2022 tothe fiscal year ending February 28, 2024)

April 12, 2021

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.

Summary of the Fifth Medium-Term Management Plan
Initiatives and changes in the operating environment during the period of the Fifth MediumTerm Management Plan

Jewelry Business
Rebranding initiatives

 While the challenge of rebranding Canal 4ºC helped cultivate new customers,
the gap created with existing major customers led to a review and course
correction
 Improved the value of the 4ºC brand and worked toward a policy of
implementing initiatives over an extended period of time while taking propercare of existing customer

Apparel Businessgrowth Worked to expand the opening of PALETTE stores focusing on the Kansai
region; net increase of 15 stores over a three-year period; steady progress inthe strategy to entrench the Group’s dominant position in the area

Strengthening themanagement andbusiness platformsthrough businessrestructuring

 Jewelry Business: Withdrew from the China market; disposed of
unprofitable brands and items (4ºC Bag, Luria 4ºC, MAISON JEWELL) Apparel Business: Withdrew from the Vietnam factory; worked to upgradeand expand overseas production bases by cultivating partner companies andstrengthening collaboration

Securing a balanced
portfolio that isresilient to changes inoperating conditions

 Sold shares in FUJI CO., LTD.; work toward equity-method affiliate
exclusion from the scope of consolidation
 Improve portfolio stability through Apparel Business growth2

Sixth Medium-Term Management Plan

Sixth Medium-Term Management Plan
Period of the plan: From the fiscal year ending February 28, 2022 tothe fiscal year ending February 28, 2024

Against the backdrop of a rapidly changing operating environment,
the Company will maximize the strengths of the Groupto provide products and services that exceed customer expectations
while targeting continued growth.

3Understanding of the Sixth Medium-Term Management Plan
Operating Environment
Understanding of the operating environment during the period of the Sixth MediumTerm Management Plan

December 23 to fall on a weekday due to the change in Japan’s imperial era; reduction in Christmas
demandIncidence of rapid and irreversible changes in lifestyles and consumption trends due to COVID-19
Expectation that several years will be required for the effects of COVID-19 to dissipate; understandingthat competitive advantage will depend on the existence or otherwise of a growth strategy that takes into
account post-COVID-19 society

Jewelry Business Rather than pursue short-term growth, undertake investments aimed
at improving brand value taking into account the harsh external
environment during the period of the Sixth Medium-TermManagement Plan Improve the feasibility of growth strategies from the Seventh
Medium-Term Management Plan by strengthening brand prowess
and establishing an engagement process with customers in the digitalsociety age

Apparel Business Increase in PALETTE growth opportunities on the back of the shift
to small trading zones attributable to the new normal andcommunity-based store demand growth Work toward further growth through a proactive store opening
strategy4

Direction of the Sixth Medium-Term Management Plan
(1) Establish a second business pillar and build a robust
business portfolio through PALETTE growth Undertake investments aimed at improving the valueof the 4ºC brandJewelry Business Work to maintain and improve profitability as a highprofit company; also serve as a driver of future growth
Apparel Business Target the opening of 10 new PALETTE stores
annually; serve as a driver of topline growth(2) Strong financial base
Effective use ofcash flow

 Strengthen the stability of the financial base5

Basic Policies of the Sixth Medium-Term Management Plan～Business Vision
1Jewelry Business(1) Enhance the value of the 4ºC jewelry brand(2) Expand the opening of Canal4ºC stores(3) Improve LTV* by strengthening engagement with customers(4) Increase the sophistication of the digital strategy and expand
e-commerce sales(5) Maintain and strengthen a highly profitable structure*LTV：Life Time Value

2Apparel Business(1) Further entrench the Group’s dominant position in the Kansai area
by opening PALETTE stores; strengthen the organizational structure
and management capabilities (* Net sales in Japan: Over ¥15 billion)(2) Rebuild and strengthen overseas production bases; create newmarkets

6Basic Policies of the Sixth Medium-Term Management Plan～Organizational Vision
1Strengthen the Group business management function(1) Strengthen Group staff functions(2) Strengthen the risk management structure and system(3) Promote DX

2

Promote the development of the Group’s human resources(1) Continue efforts through the Group’s corporate university, aneducation program aimed at passing on values(2) Develop next-generation leaders and DX human resources3

Promote workstyle reforms toward a new normal(1) Put in place a work and labor environment that properly addresses
the new normal(2) Increase productivity through digitalization7

Sixth Medium-Term Management Plan～Numerical Vision
Consolidated Business Results(Millions of yen)

Fiscal 2020 Results

Fiscal 2023 Plan

Final fiscal year of the fifth MediumTerm Management Plan

Final fiscal year of the sixth MediumTerm Management Plan

Net sales

39,44945,000+14.1

Operating income

2,767

3,754

+35.7

Change (%)*Key management indicator： Operating income before the amortization of goodwill = operating income + goodwill amortization
Operating income before theamortization of goodwill

3,263

4,250

+30.2

Business Results by Segment

Jewelry BusinessApparel Business(Millions of yen)

Fiscal 2020 Results

Fiscal 2023 Plan

Final fiscal year of the fifth
Medium-Term Management Plan

Final fiscal year of the sixth
Medium-Term Management Plan

Change(%)

Net sales

20,641

22,000+6.6

Operating income

2.139

2,800+30.9

Net sales

18,80723,000+22.3

896

1,200+33.9

Operating income8Overview of the Sixth Medium-Term Management Plan (1)Undertake investments aimed at improving the value of the 4ºC brand Plan to invest in advertising that combines digital and SNS collaboration, centered on thedevelopment of magazines with a total of more than 100 pages in fiscal 2021.
 Lift the brand image by continuously undertaking investments; work to expand customer
supportPure advertisement / tie-up advertisement,
paper & digital distribution
In 2021, published in the target magazine

Total 100 pages
or more9

Overview of the Sixth Medium-Term Management Plan (2)Period of the Sixth Medium-Term Management Plan
Consolidated net sales target in the final fiscal year: ¥45 billion
Work to improve brand value, increase customer LTV, andJewelry Business grow e-commerce to maintain and strengthen a highlyprofitable structureContinue to open 10 new PALETTE stores annually; expand
Apparel Business net sales by continuing to promote a strategy to entrench theGroup’s dominant position in the Kansai area

Focus on improving brand value and strengthening profitability in theJewelry Business
Expand the topline through Apparel Business growth10Apparel business

PALETTE Growth StrategyPromote efforts to further entrench PALETTE’s dominant position in the Kansai area; work toward a store opening expansion phase
Progress in the shift to small trading zones attributable to the new normal; positive impact also from community-based store demand
growthWork to increase profit margins by strengthening store operating capabilities and scale expansion; target an operating income margin
of 5%

Image of PALETTE Growth

Net sales

Fifth Medium-Term
Management Plan

(Millions of yen, %)Operating margin
Sixth Medium-Term
Management Plan

20,000
5.0

4.5

4.0

15,0003.3

11,86010,715

2.7

8,919

9,433

8,338
2.2
2.0

Number ofstores

FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024FY2026（2018/2）（2019/2）（2020/2）（2021/2）（2022/2）（2023/2）（2024/2）（2027/2）

65717380

8897106・ ・ ・13511Overview of the Sixth Medium-Term Management Plan (3)Group Consolidated Numerical Visions (FY2023)
Operating income before theamortization of goodwill ¥4.25 billion or more

ROEEPS*

8.0%* or more
150 yen or more

* Calculated using net income before the amortization of goodwill(Net income before the amortization of goodwill = profit attributable to owners of parent + goodwill amortization)

Progressive Image of Numerical Vision Achievement～Operating Income Outlook¥4.25 billion¥3.85 billion¥3.26 billion¥0.49 billion¥0.49 billion¥0.49 billion¥3.35 billion¥3.75 billion¥2.76 billion
FY2020 (2021/2) Actual
Final fiscal year of the fifth
Medium-Term Management Plan

FY2021 (2022/2) Plan

FY2023 (2024/2) Plan
Final fiscal year of the sixth
Medium-Term Management Plan

12

Shareholder Returns Policy, Cash DividendsPositioned efforts to increase the level of profit return through the payment of stable and continuous cash
dividends and the flexible repurchase of own shares at the heart of the Company’s shareholder returns
policyContinue to emphasize consecutive increases in cash dividends with the aim of paying a cash dividend of¥100 per share in the future(Yen)

Annual Cash Dividend Results and Outlook

100758081836550403032202122

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021（2011/2）（2012/2）（2013/2）（2014/2）（2015/2）（2016/2）（2017/.2）（2018/2）（2019/2）（2020/2）（2021/2）（2022/2）

13

Toward Stable and Continuous Growth～Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel ODM, andretail businesses
VisionInputsBusinesses

Outputs

Customers

Jewelry SPA

Customers

Employees

Employees

Manufacturers

Manufacturers

Partnercompanies

Apparel OEM

RetailPartnercompanies
SocietySociety

Enhanced corporate value;
increased customer satisfaction

A century-old company and brandShareholders

Shareholders

Outcomes

Management and business platforms
The environment, society, and governance (ESG)

14

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

Increasing awareness toward
the environmental impact of
the fashion industry

Social Issues
1. Encouraging the advancement ofwomen

Incidence of funds flowing
to terrorist and criminalorganizations throughmoney laundering

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

2. Eliminating illegal labor, includingchild labor

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

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

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

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

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

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

 Continuously support efforts to solve water-related issues as trustees of theJapan Water Forum16

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

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

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