CONSOLIDATED FINANCIAL REPORTFISCAL 2016（Japanese GAAP）(March 1, 2016 to February 28, 2017)
April 10, 2017
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 18, 2017
Fiscal 2016 Securities Report filing date (planned): May 19, 2017
Dividend payment commencement date (planned): May 19, 2017
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 2016 (March 1, 2016 to February 28, 2017)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen%

Millions of yen

Profit attributable toOrdinary Income%

Millions of yen

owners of parent%

Millions of yen

FY 2016

49,797

(5.8)

6,529

6.8

7,796

13.7

4,962

16.0

FY 2015

52,883

4.3

6,113

11.8

6,854

10.8

4,277

18.4

(Note) Comprehensive income: FY 2016: ¥5,728 million (72.9%)
Net Income Per
Share

FY 2015: ¥3,313 million (－26.5%)

Net Income Per
Share (Diluted)

Yen

Ordinary Income
to Total Assets

ROE

Yen

Ordinary Income
to Operating
Revenues%%%

FY 2016193.38193.13
10.5
FY 2015163.22
162.92
9.4(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2016: ¥1,088 million
FY 2015: ¥481 million

12.7
11.3

13.1
11.6

(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 28, 2017

62,42049,07478.4

1,920.55

As of February 29, 2016

60,57645,23774.6

1,747.62(Reference) Shareholders’ equity: As of February 28, 2017: ¥48,959million

As of February 29, 2016: ¥45,168million(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 2016

4,964(2,347)(2,305)5,288

FY 2015

5,319

(545)

(3,739)4,985

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 2015
FY 2016
FY 2017 (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

%

%

—
—
—

20.00
25.00
32.50

—
—
—

20.00
25.00
32.50

40.00
50.00
65.00

1,070
1,318

24.5
25.9
30.1

2.3
2.6

Forecast of Consolidated Results for FY 2017 (March 1, 2017 to February 28, 2018)(% 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

23,00051,000

(0.3)
2.4

2,500
6,850

(7.5)
4.9

3,150
8,250

(3.8)
5.8

2,150
5,550

3.3
11.8

83.78
216.27Other(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): Yes
New: —
Excluded: 1 (Company name: MISUZU Co., Ltd.)(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: No(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 28, 2017: 29,331,356 shares
As of February 29, 2016: 29,331,356 shares
2. Number of treasury stock
As of February 28, 2017: 3,838,799 shares
As of February 29, 2016: 3,485,424 shares
3. Average number of shares for the year
FY2016: 25,662,520 shares
FY2015: 26,205,718 shares
Notes:
1. The number of recorded treasury stock is inclusive of 134,200 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 2017 (March 1, 2017 to February 28, 2018)(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 2016

2,272

9.5

1,751

13.2

1,587

6.4

1,333

290.0

FY 2015

2,076

4.3

1,546

8.3

1,492

8.1

341

(69.8)Net Income per ShareNet Income Per Share(Diluted)

Yen

Yen

FY 2016

50.51

50.45

FY 2015

12.62

12.60

― 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 28, 2017

36,76018,56050.2

703.29As of February 29, 2016

35,752

19,11753.3

716.59(Reference) Shareholders’ equity: As of February 28, 2017: ¥18,446 million

As of February 29, 2016: ¥19,048 million* This financial report for the fiscal 2016 is not subject to the review procedures.
* 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

6(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 2016, the fiscal year ended February 28, 2017, the economic outlook in Japan remained uncertain as aresult of persistent sluggish personal consumption, rapid fluctuation in exchange rates, the Brexit issue, theimpact of the U.S. presidential election, and concerns over economic slowdown in China and other emerging
markets.
In the retail industry, business conditions remained harsh. This was due to a variety of factors including
ongoing budget-consciousness and changes in consumption trends of foreigners visiting Japan.
Under these circumstances, during the fiscal year ended February 28, 2017, the second year of the fourth
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 pursued CSR-based management in an effort to become a highly trusted corporate group,
and worked to enhance enterprise value by strengthening internal controls, providing shareholder returns, andmaking medium to long-term investments linked to earnings growth.
In addition to promoting a channel strategy by developing and cultivating brands and operating activities
in the Jewelry Business, which the Group has positioned as a growth driver, YONDOSHI HOLDINGS also
worked diligently to increase earnings in the Apparel Business.
Taking each of the aforementioned activities into consideration, net sales amounted to ¥49,797 million (down
5.8% compared with the previous fiscal year). From a profit perspective, operating income came to ¥6,529
million (up 6.8% YoY), ordinary income was ¥7,796 million (up 13.7% YoY), and profit attributable toowners of parent was ¥4,962 million (up 16.0% YoY).
Based on these result, operating income and net income reached record highs for a fifth consecutive fiscal
year while the Group posted record high ordinary income for a sixth consecutive fiscal year.
Operating results by business segment were as follows.
Jewelry Business
Net Sales¥
33,166 million (Up 4.0% YoY)
Operating Income¥
5,980 million (Up 2.6% YoY)
In the Jewelry Business, largely undertaken by the F.D.C. Products Group, every effort was made to expand
the range of items and zones in line with the renovation of existing locations handling the mainstay 4°C
jewelry brand. In addition, trends in the canal 4°C brand that witnessed an increase in the number of items
handled, the Luria 4°C brand which experienced a vigorous pickup in the number of stores opened, and
MAISON JEWELL which is mainly marketed through the suburban shopping center channel, were robust.
Complementing these positive trends, the e-commerce business also reported double-digit percentage growthyear on year.
As a result, segment sales reached a record high for a fifth consecutive fiscal period, and operating
income for an eighth consecutive fiscal period.
Apparel Business
Net Sales¥
16,630 million (Down 20.8% YoY)
Operating Income¥
494 million (Up 162.1% YoY)
In the Apparel Business, the AS’TY Group was successful in strengthening measures that harness thecompanies planning capabilities and overseas production framework with major clients. As a result, earnings
substantially improved. age Co., Ltd. witnessed strong trends on the back of the opening of new locations of its
mainstay everyday fashion brand PALETTE, and the strengthening of sales promotion activities and its
product lineup. Of note, MISUZU Co., Ltd. was removed from the scope of consolidation from the subject
fiscal year, following the transfer of stock.
Accounting for these factors, net sales in the Apparel Business segment fell below the level recorded in
the previous fiscal year. Operating income, on the other hand, improved substantially year on year.

― 5 ―Outlook
In recent years, operating conditions in the retail sector are expected to become increasingly difficult. This islargely due to the forecast trend toward continued frugality stemming from consumers’ perceptions and theneed to protect their daily lives.
Against this backdrop, the YONDOSHI HOLDINGS Group will continue to nurture human resources,
bolster product capabilities, and assess market trends, with the aim of becoming a century-old company andbrand throughout the final year of its fourth medium-tern management plan. At the same time, we willcontinue 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, and making
medium- to long-term investments linked to earnings growth.
Through the F.D.C. Products Group, which is responsible for the Group’s Jewelry Business, we will
strengthen our 4°C jewelry brand product development capabilities while pursuing a unique and distinct
identity as a 4°C BRIDAL specialty store. Moreover, we will look to open new canal 4°C, Luria 4°C, andother brand stores. At the same time, we will promote a channel strategy by developing and nurturing new
businesses.
In the Apparel Business, the AS’TY Group will work to further enhance its product planning andproduction management capabilities. In addition, age Co., Ltd. will reinforce its dominant position in the
Kansai area by opening new stores in the PALETTE everyday fashion brand business while continuing tobolster its sales promotion activities.
Taking each of these endeavors into consideration, the YONDOSHI HOLDINGS Group is committed to
becoming a strong corporate group with a unique and distinct identity.
Based on the aforementioned, net sales are projected to reach ¥51,000 million, operating income to total¥6,850 million, ordinary income to come to ¥8,250 million, and profit attributable to owners of parent toamount to ¥5,550 million on a consolidated basis in the fiscal year ending February 28, 2018.
(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 ¥62,420 million, an increase of ¥1,844
million compared with the end of the previous fiscal year. While the balance of short-term securities climbed¥3,757 million, this decrease in assets was largely attributable to a drop in the balance of notes and accounts
receivable ― trade of ¥534 million.
Total liabilities came to ¥13,346 million. This was ¥1,992 million lower than the balance as of February
29, 2016. The principal movement during the fiscal year under review was the decrease in income taxes
payable of ¥403 million.
Total net assets stood at ¥49,074 million as of February 28, 2017, up ¥3,836 million compared with theend of the previous fiscal year. This increase in net assets was largely attributable to an increase in retained
earnings of ¥3,768 million.
Cash Flows
Cash and cash equivalents as of the end of the period under review stood at ¥5,288 million, an increase of¥302 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥4,964 million, down ¥355 million compared withthe previous fiscal year. In the fiscal year under review, the major cash outflow was equity in (earnings) losses
of affiliates of ¥1,088 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities totaled ¥2,347 million, up ¥1,802 million compared with the previous
fiscal year. The primary cash outflow was for the purchase of investment securities of ¥2,517 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥2,305 million, down ¥1,434 million compared with theprevious fiscal year. This largely reflected cash dividends paid of ¥1,194 million.

― 6 ―(Reference) Trends in the YONDOSHI HOLDINGS Group’s cash flow indicators are provided in thefollowing table.
Fiscal 2013
Fiscal 2014
Fiscal 2015
Fiscal 2016
Shareholders’ equity ratio (%)
75.3
74.9
74.6
78.4
Shareholders’ equity ratio based on
74.3
88.5
105.9
104.1
market capitalization (%)
Cash flow to interest-bearing debt
0.2
0.2
0.2
0.2
ratio (Year)
Interest coverage ratio (Times)
1,851.9
2,525.0
6,636.5
20,716.8
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 2016 and Fiscal 2017
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. Under the fourth medium-term management plan, the
YONDOSHI HOLDINGS Group has a policy to lift the dividend payout ratio on a progressive basis to 30%
over the medium term.
Based on the aforementioned policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash
dividend of ¥25 per common share. Together with the interim cash dividend paid of ¥25 per common share,
the full fiscal year cash dividend for fiscal 2016 will therefore come in at ¥50 per common share. Looking at
dividends for fiscal 2017, the Company plans to pay an interim and fiscal year-end cash dividend of ¥32.5 percommon share for a full fiscal year cash dividend of ¥65 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, the YONDOSHI HOLDINGS Group iscommitted to becoming a company that is defined by its ability to create new trends in global fashion. We arecommitted to putting 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 theirhearts and minds.
(2) Target Operating Indicators
Under its fourth medium-term management plan, which began in the fiscal year ended February 29, 2016,
YONDOSHI HOLDINGS plans to follow a path of “Challenge and Evolution.” In specific terms, theCompany has identified its numerical vision for consolidated net sales, ordinary income, and ROE. Moving
forward, we will advance business strategies and implement a variety of measures aimed at improving
profitability, increasing the efficiency 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 29, 2016

February 28, 2017

(As of February 29, 2016)(As of February 28, 2017)

ASSETS
Current assets:
Cash and deposits

2,145,844

2,088,219

Notes and accounts receivable ― trade

3,671,116

3,137,084

Short-term investment securities

3,140,000

3,200,000

Merchandise and finished goods

7,612,167

7,453,776

Work in process

746,972

844,796

Raw materials and supplies

702,663

703,247

Deferred tax assets

520,738

576,831

Advance payments-trade

2,677

5,280

Accounts receivable-other130,500

301,829

Other

241,858

255,212

Allowance for doubtful accounts(11,940)(2,357)

18,902,600

18,563,921

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

6,028,177

5,682,408

Land

5,528,465

5,492,215

Lease assets, net

258,728

135,888

Other, net

843,549

815,913

12,658,921

12,126,426

Goodwill

5,213,301

4,716,796

Lease assets

288,720

150,972

Total property, plant and equipment
Intangible assets:

Right of trademark

1,143

883

Other

84,40961,4195,587,575

4,930,072

Investment securities

18,490,635

22,248,070

Guarantee deposits

334,717

267,444

Long-term loans receivable

18,11819,099Deferred tax assets

674,181753,485

Total intangible assets
Investments and other assets:

Deferred tax assets for land revaluation

75,412

71,490Real estate for investment, net

458,477

453,866

Net defined benefit asset

391,765

520,200

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

2,414,191

1,895,332

85,92479,906

598,005

599,713

Allowance for doubtful accounts(114,219)(108,150)

23,427,211

26,800,458

Total investments and other assets
Total noncurrent assets
Total assets― 9 ―41,673,708

43,856,957

60,576,308

62,420,878

(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 29, 2016

February 28, 2017

(As of February 29, 2016)(As of February 28, 2017)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

4,289,341

Lease obligations

3,955,935

280,597

199,671

Income taxes payable

1,545,501

1,141,834

Provision for bonuses

528,148

351,451

Provision for directors’ bonuses

56,60065,050Asset retirement obligations

13,391

1,000

Other

3,616,441

2,977,267

Total current liabilities

10,330,022

8,692,207

Noncurrent liabilities:
Long-term loans payable

478,810

378,940

Lease obligations

345,705

175,981Long-term guarantee deposited

324,428

317,622

1,565,624

1,687,876

Net defined benefit liability

669,081573,336

Provision for directors’ retirement benefits

433,131

378,418

Deferred tax liabilities

Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities

1,040,972

993,306

150,709148,733

5,008,462

4,654,214

15,338,485

13,346,422

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,146,513

18,145,727

Retained earnings

29,958,714

33,727,198

Treasury stock(5,768,298)(6,510,635)

Total shareholders’ equity

44,823,450

47,848,810

Valuation difference on available-for-sale securities

810,524

1,336,181

Deferred gains or losses on hedges(34,981)

16,959

Revaluation reserve for land(158,063)(161,985)

Accumulated other comprehensive income:

Foreign currency translation adjustments

81,167

72,940Remeasurements of defined benefit plans(353,371)(153,265)

Total accumulated other comprehensive income

345,275

1,110,829

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

69,097

114,815

45,237,823

49,074,456

60,576,308

62,420,878

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal 2015

Fiscal 2016

(March 1, 2015 to(March 1, 2016 to

February 29, 2016)

February 28, 2017)

Net sales

52,883,639

49,797,466

Cost of Sales

22,051,666

20,449,099

Gross profit

30,831,973

29,348,366

Selling, general and administrative expenses

24,717,982

22,818,564

Operating income

6,113,990

6,529,802

Non-operating income
Interest income

15,823

15,564

Dividends received
Equity in earnings of affiliates

87,60090,914

481,960

1,088,146Rent of real estate for investment

95,35373,140Foreign exchange gains

4,015

－

Other

69,78741,324

Total non-operating income

781,540

1,309,089

Non-operating expenses
Interest expenses

801

239

5,950

4,697

Management cost on real estate for investment

2,046

2,046

Commission for purchase of treasury stock

25,600833－

16,114

Other

6,145

18,035

Total non-operating expenses

40,543

41,967

6,854,987

7,796,924

Depreciation on investments in real estate

Foreign exchange losses

Ordinary income
Extraordinary income
Gain on sales of investment securities

64,675－Gain on sales of noncurrent assets

67,167－－

23,400131,842

23,400

Settlement received
Total extraordinary income
Extraordinary loss
Impairment loss

227,936

261,928－

493,781

Loss on closing of stores

6,359

22,469Demolition costs

24,372－－

13,658Loss on sales of shares of subsidiaries and associates

Loss on abandonment of inventories
Loss on liquidation of brands－

84,541

Total extraordinary losses

258,668

876,379

Net income before income taxes

6,728,161

6,943,945

Income taxes ― current

2,557,311

2,264,107

Income taxes ― deferred(106,332)(282,725)

Total income taxes

2,450,978

1,981,382

Net income

4,277,182

4,962,562

Profit attributable to owners of parent

4,277,182

4,962,562― 11 ―

Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal 2015

Fiscal 2016

(March 1, 2015 to(March 1, 2016 to

February 29, 2016)

February 28, 2017)

Income before minority interests

4,277,182

4,962,562

Other valuation difference on available-for-sale securities(586,514)

435,793

Deferred gains or losses on hedges
Revaluation reserve for land

(48,186)

50,48575,412(3,922)Other comprehensive income

Foreign currency translation adjustments
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(3,887)(8,226)(199,300)

106,602(201,446)

184,821(963,922)
3,313,260

765,553
5,728,116

3,313,260

5,728,116

Comprehensive income attributable toComprehensive income attributable to owners of the parent― 12 ―

(3) Consolidated Statements of Changes in Net Assets
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)

Profit attributable to owners of parent

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 fromsurplusProfit attributable toowners of parent
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― 13 ―

Fiscal 2016 (March 1, 2016 to February 28, 2017)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

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

Commonstock

Capitalsurplus2,486,520

18,146,513

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

Total
treasury
stock

Total
shareholders’equity(5,768,298)

44,823,450

Changes of items during the period
Dividends from surplus(1,194,078)

Profit attributable to owners of parent

4,962,562

Purchase of treasury stock
Disposal of 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(1,194,078)
4,962,562(865,887)(865,887)(865,887)

15,354

15,354

14,569108,194108,194(785)

108,194—(785)

3,768,483(850,532)

108,194(742,337)

3,025,360

2,486,520

18,145,727

33,727,198(6,140,235)(370,400)(6,510,635)

47,848,810(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
stock
Disposal of 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
assets810,524(34,981)(158,063)

81,167(353,371)

345,275

69,09745,237,823(1,194,078)
4,962,562(865,887)
14,569108,194
525,656

51,940(3,922)(8,226)200,105

765,553

45,718811,271525,656

51,940(3,922)(8,226)200,105

765,553

45,7183,836,632

1,336,181

16,959(161,985)

72,940(153,265)

1,110,829

114,815

49,074,456― 14 ―

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal 2015

Fiscal 2016

(March 1, 2015 to(March 1, 2016 to

February 29, 2016)

February 28, 2017)

Cash Flows from Operating Activities:
Net Income before income taxes

6,728,161

6,943,945

Depreciation and amortization

1,191,512

1,176,146

Impairment loss

227,936

261,928

Amortization of goodwill

496,504

496,504

1,845(15,439)

Increase (decrease) in provision for bonuses

172,463(157,977)

Increase (decrease) in net defined benefit liability

115,449

71,966

Increase (decrease) in other provision

62,48910,753(103,424)(106,478)―(23,400)

Increase (decrease) in allowance for doubtful accounts

Interest and dividends income
Settlement received
Interest expenses

801

239

(481,960)(1,088,146)

Foreign exchange losses (gains)(2,245)

4,662

Loss (gain) on sales of noncurrent assets(67,166)―

Loss (gain) on sales of investment securities(64,675)――

493,781

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

313,902

Decrease (increase) in inventories(88,298)(365,560)

Equity in (earnings) losses of affiliates

Loss (gain) on sales of shares of subsidiaries and associates

Increase (decrease) in notes and accounts payable ― trade119,541(185,981)

Increase (decrease) in accrued consumption taxes(65,483)(159,233)

Increase (decrease) in advances received

38,995(163,608)(549,568)(615)

Decrease (increase) in other assets(4,060)(213,935)

Increase (decrease) in other liabilities

86,849135,415

7,597,973

7,407,366

225,308

226,138

(801)

(239)

Increase (decrease) in accounts payable - other

SubtotalInterest and dividends income received
Interest expenses paid―

23,400

Income taxes paid

Settlement package received(2,502,657)(2,692,397)

Net cash provided by (used in) operating activities

5,319,822

4,964,266― 15 ―

(Thousands of yen)
Fiscal 2015

Fiscal 2016

(March 1, 2015 to(March 1, 2016 to

February 29, 2016)

February 28, 2017)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets(1,063,206)(926,305)

3,831

12,543(12,810)(6,754)

Proceeds from redemption of securities

150,000

300,000

Purchase of investment securities(17,724)(2,517,217)

Proceeds from sales of investment securities

296,3700―500,000

Proceeds from redemption of investment securities
Proceeds from sales of real estate for investment

352,250―

Payments of long-term loans receivable(6,177)(5,960)

Collection of long-term loans receivable

10,327

4,979

Purchase of long-term prepaid expenses(209,566)(117,120)―

402,580

Other payments(313,088)(248,898)

Other proceeds

264,403

254,343

Net cash provided by (used in) investing activities(545,390)(2,347,809)

Proceeds from long-term loans payable

549,800―

Repayment of long-term loans payable(119,300)(99,870)(3,151,460)(865,887)

Change of scope of consolidation ─ proceeds from sales of sharesof subsidiaries

Cash Flows from Financing Activities:

Purchase of treasury stock
Proceeds from sales of treasury stock

69,243

119,555

Cash dividends paid

(976,612)(1,194,078)

Other payments(111,079)(265,073)(3,739,409)(2,305,353)(2,111)(8,728)Net increase (decrease) in cash and cash equivalents

1,032,910

302,375

Cash and cash equivalents at beginning of period

3,952,933

4,985,844

Cash and cash equivalents at end of period

4,985,844

5,288,219

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 Accounting Standard for Business Combinations, etc.)
The Companies adopted “Revised Accounting Standard for Business Combinations” (ASBJ Statement No. 21,
September 13, 2013 (hereinafter, “Statement No. 21”)), “Revised Accounting Standard for Consolidated
Financial Statements” (ASBJ Statement No. 22, September 13, 2013 (hereinafter, “Statement No. 22”)) and“Revised Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013
(hereinafter, “Statement No. 7”)) (together, the “Business Combination Accounting Standards”), from the fiscal
year ended February 28, 2017. As a result, the Company changed its accounting policy to recognize in capitalsurplus the differences arising from the changes in the Company’s ownership interest of subsidiaries overwhich the Company continues to maintain control and to record acquisition related costs as expenses in thefiscal year in which the costs are incurred. In addition, the Company changed its accounting policy for thereallocation of acquisition costs due to the completion following provisional accounting to reflect suchreallocation in the consolidated financial statements for the fiscal year in which the business combination took
place. Moreover, the Company also changed its presentation of net income, and the presentation of “minority
interests” to “non-controlling interests.” The consolidated financial statements for the previous fiscal year havebeen recombined to reflect these changes in presentation.
With regard to the application of the Business Combination Accounting Standards, the Company
followed the provisional treatments in article 58-2 (4) of Statement No. 21, article 44-5 (4) of Statement No.
22 and article 57-4 (4) of Statement No. 7 with application from the beginning of the fiscal year ended
February 28, 2017 prospectively.
There was no effect on the consolidated financial statements.
(Change in Depreciation Method for Property, Plant, and Equipment)
In accordance with the revision to the Corporation Tax Act, with effect from the subject fiscal year, in its
consolidated accounts the Company and its consolidated subsidiaries have applied the "Practical Solution on achange in depreciation method due to Tax Reform 2016" (ASBJ Practical Issues Task Force (PITF) Solution
No. 32, June 17, 2016). Accordingly, the Company and its consolidated subsidiaries have changed thedepreciation method for facilities attached to buildings and structures acquired on and after April 1, 2016 fromthe declining balance method to the straight line method.
The effect of these changes on the Company’s consolidated profit and loss in the subject fiscal year is
negligible.

(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. 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.

― 17 ―

3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
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.

― 18 ―

Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)(Thousands of yen)
Reporting Segments
Total

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

33,166,923

16,630,542

49,797,466―

49,797,466

26,920988,597

1,015,517(1,015,517)

―

Total

33,193,844

17,619,140

50,812,984(1,015,517)

49,797,466

Segment income

5,980,208

494,438

6,474,647

55,155

6,529,802

Segment assets

32,336,203

22,936,863

55,273,066

7,147,812

62,420,878

Depreciation

797,879

369,613

1,167,492

17,805

1,185,298

Increase in property, plantand equipment andintangible assets

749,823

202,481952,304―

952,304

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers

Other items

Notes:
1. (1) The adjustment amount of ¥55,155 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 ¥551,659 thousand.
(2) The adjustment amount of ¥7,147,812 thousand for segment assets is mainly comprised of corporate assets of¥5,619,065 thousand and the balance of unamortized goodwill of ¥4,716,796 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥17,805 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.

(Related Information)
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.

― 19 ―

Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)
3. Product and Service Information
As the same information is disclosed in the Segment Information, product and service information has been
omitted.

4. Geographical Segment Informationiii. 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.
iv. 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 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

Adjustment
amountTotal

120,663―

227,936

Total

227,936

Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)(Thousands of yen)
Reporting Segments
Jewelry BusinessImpairment loss

119,705

Apparel Business
142,223

Adjustment
amountTotal
261,928―

Total

261,928(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
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.
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)
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 ¥4,716,796 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 2015, the Fiscal Year Ended February 29, 2016 (March 1, 2015 to February 29, 2016)
Not applicable.
Fiscal 2016, the Fiscal Year Ended February 28, 2017 (March 1, 2016 to February 28, 2017)
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 toemployees 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 YONDOSHIHOLDINGS 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 dateeach month. When the trust is concluded, if the trust has earned a profit from a rise in the share price, thefunds are distributed to the employee beneficiaries in proportion to their contribution. If a loss is incurred
due to a decline in the share price, and debt pertaining to the trust property remains, in accordance with theguarantee article in the loan agreement the Company will discharge the entire debt to the bank, with noadditional 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 to thetrust (excluding ancillary expenses). At the end of the subject fiscal year, the book value of the subject
treasury shares was ¥370,400 thousand, for 134,200 shares.
iii. Book value of debt recorded through application of the gross method¥378,940 thousand at the end of the subject fiscal year

― 21 ―

(Per Share Information)(Yen)
Fiscal 2015
(March 1, 2015 to February 29, 2016)

1.
2.
3.

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

Fiscal 2016
(March 1, 2016 to February 28, 2017)

1,747.62
163.22
162.92

1.
2.
3.

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

1,920.55
193.38193.13

Notes: 1. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2015
(March 1, 2015 toFebruary 29, 2016)

Total earnings per share
Profit attributable to owners of parent
Amounts not applicable to ordinary shareholders
Profit attributable to owners of parent applicable to common
stock
Average number of common shares (Shares)

Fiscal 2016
(March 1, 2016 to
February 28, 2017)

4,277,182—

4,962,562—

4,277,182

4,962,562

26,205,718

25,662,520—
47,932(47,932)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:
102,000 shares—
32,655(32,655)
New share subscription rights
issued on July 6, 2015
8th issuance of new sharesubscription rights
Common stock:
102,000 shares

Net income per share adjusted for diluted shares
Adjustment to profit attributable to owners of parent 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

New share subscription rights
issued on June 8, 2016
9th issuance of new sharesubscription rights
Common stock:27,000 shares
New share subscription rights
issued on June 8, 2016
10th issuance of new sharesubscription rights
Common stock:
24,700 shares

2. The basis for calculating net assets per share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2015
(March 1, 2015 toFebruary 29, 2016)

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 2016
(March 1, 2016 to
February 28, 2017)

45,237,823

49,074,456

69,097

114,815(69,097)
45,168,726(114,815)
48,959,640

25,845,932

25,492,557

3. 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.

― 22 ―

5. Other(1) Changes in Managementi. Changes in representative director
Not applicable.
ii. Other management assignments (scheduled date of appointment: May 18, 2017)
・ Retiring director (excluded Audit/Supervisory Committee Members)
Nobuyuki Hosoda
Note: Mr. Hosoda is concurrently serving as Director and Adviser of AS’TY INC. He will retire
as Director and Adviser of the company at the expiration of his term of office on May 8,
2017.
・ Retiring director (Audit/Supervisory Committee Member)
Tomoaki Fujimori
Note: Mr. Fujimori is an outside director.
iii. Candidate director (alternate Audit/Supervisory Committee Member)
Kiyoshi Shin (currently an attorney-at-law)― 23 ―