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

Investors’ Presentation
Results for the Fiscal 2020
(The Fiscal Year Ended February 28, 2021)
April 12, 2021

Contents
Ⅰ. Overview and Summary of Fiscal 2020, the Fiscal Year Ended February 28,2021
Ⅱ. Strategic Approach and Business Results Forecasts for Fiscal 2021

Saishi Kimura. Chairman and Representative Director・CEO
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ContentsⅠ. Overview and Summary of Fiscal 2020, the Fiscal Year Ended February 28,2021Ⅱ．Strategic Approach and Business Results Forecasts for Fiscal 2021

Fiscal 2020 Business Results: Impact of COVID-19
Jewelry Business Implemented various measures including the suspension of business while shortening operating
hours at certain stores; substantial drop in sales especially in April and May(Business suspended at all stores from April 25 to May 6; business suspended at more than 80% of all state of emergency storesfor 27 days and more than 50% for 43 days)

 Significant impact on the number of customers from mid-November 2020 following the third
wave of COVID-19 infections through the peak period of Christmas demand to January 2021
when the government once again declared a state of emergency

Apparel Business Took steps in the Apparel Manufacturing Business to strengthen online management in responseto the ban on overseas travel, maintain smooth operations across the supply chain, andsubstantially reduce travel and transportation expenses
 Everyday fashion brand PALETTE reported record high net sales and operating income on theback of successful efforts to enhance awareness and steady progress in expanding PALETTE
membership from May4

Overview of Consolidated Operating Results for
Fiscal 2020 (1) Despite decreases in revenue and earnings due to the impact of COVID-19,
secured a steady stream of profit
Net sales: ¥39,449 million (－12.3% YoY ) Operating income: ¥2,767 million (－30.4 % YoY)
Ordinary income: ¥3,195 million (－25.9% YoY) Net income: ¥1,622 million (－34.5% YoY)
(Millions of yen)

Net sales
44,97039,449Operating income

Ordinary income

Net income

4,312

3,975

2,475
3,195
2,767

－12.3%FY2019Actual Results

FY2020
Actual Results－30.4%FY2019
Actual Results

FY2020Actual Results

1,622－25.9%

FY2019Actual Results

FY2020
Actual Results－34.5%FY2019Actual Results

FY2020
Actual Results

5Overview of Consolidated Operating Results forFiscal 2020 (2)FY2019 (2020/2)(Millions of yen, %)ActualResults

FY2020 (2021/2)
Jul. 8PublishedValue(%)（％）

ActualResults

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

44,970100.0

39,000100.039,449

100.0

－12.3

+0.1

Gross profit

25,78057.3

21,45055.0

21,294

54.0

－17.4

－0.7

－3.3

±0

Gross profit margin

57.3Selling, general andadministrative expenses

21,804

48.5

18,55047.6

18,527

47.0

－15.0

－0.1

Amortization ofgoodwill

496

1.1

496

1.3

496

1.3±0±0

Operating income

3,975

8.8

2,900

7.4

2,767

7.0

－30.4

－4.6

Ordinary income

4,312

9.6

3,300

8.5

3,195

8.1

－25.9

－3.1

Net income

2,475

5.5

2,000

5.1

1,622

4.1

－34.5

－20.0

≪Reference ≫Key management indicators(Millions of yen, %)55.0

FY2019 (2020/2)
ActualResults

54.0

FY2020 (2021/2)
Jul. 8Published Value(%)（％）

YoYvs. PlanIncrease(Decrease) (%)

Increase(Decrease) (%)

Operating income before theamortization of goodwill

4,471

9.9

3,396

8.7

3,263

8.3

－17.4

－3.9

Net income before theamortization of goodwill

2,971

6.6

2,496

6.4

2,118

5.4

－28.7

－15.1

* Operating income before the amortization of goodwill = operating income + goodwill amortization; net income before theamortization of goodwill = profit attributable to owners of parent + goodwill amortization

6Overview of Business Results by Segment～The Jewelry Business Decreases in revenue and earnings owing to the suspension of business at stores during April
and May and the impact of the third wave of COVID-19 infections from mid-November
 30% YoY e-commerce growth; increase in the ratio of 4ºC fashion jewelry e-commerce sales
to total sales: 10.9%⇒17%(Millions of yen)

Net sales
26,987

Operating income

Ordinary income

3,319

3,418

20,641FY2019Actual Results

FY2020
Actual Results

Net sales
Operatingincome
Ordinary
incomeNet income

ActualResults

2,242－35.6%
FY2019Actual Results

1,202－34.4%

FY2020
Actual Results

FY2019 (2020/2)(Millions ofyen, %)2,1292,139－23.5%

Net income

FY2019Actual Results－43.5%FY2020
Actual Results

FY2019Actual Results

FY2020 (2021/2)
Jul. 8Published Value(%)

ActualResults

（％）

(%)

FY2020
Actual Results

YoYJul. 8Published Value

Increase(Decrease) (%)

Increase(Decrease) (%)

26,987100.0

21,200100.0

20,641

100.0

－23.5

－2.6

3,319

12.3

2,500

11.8

2,139

10.4

－35.6

－14.4

3,418

12.7

2,600

12.3

2,242

10.9

－34.4

－13.8

2,129

7.9

1,600

7.5

1,202

5.8

－43.5

－24.9

7

Overview of Business Results by Segment～The Apparel BusinessIncreases in revenue and earnings in the Apparel Business on the back of robust everyday fashion brand
PALETTE trends
Achieved profit plan in the Apparel Manufacturing Business owing to reductions in overhead expenses including
business trip and travel costs
Achieved the ¥10 billion milestone in sales as well as record high profit in the everyday fashion brand PALETTE
due to successful efforts aimed at capturing nesting demand and opening new stores(Millions of yen)

Net sales
17,983Operating income

18,807FY2019Actual Results

896758+4.6%FY2019
Actual Results

Net sales
Operatingincome
Ordinaryincome
Net income

ActualResults

1,138980+18.3%FY2020
Actual Results

Net income
676
512+16.1%

FY2020
Actual Results

FY2019 (2020/2)(Millions ofyen, %)Ordinary income

FY2019Actual Results+32.0%FY2020
Actual Results

FY2019Actual Results

FY2020 (2021/2)
Jul. 8Published Value(%)

ActualResults

（％）

(%)

FY2020
Actual Results

YoYJul. 8Published Value

Increase(Decrease) (%)

Increase(Decrease) (%)

17,983100.0

17,800100.0

18,807

100.0

+4.6

+5.7758

4.27603.98964.7+18.3+17.9980

5.4960

5.6

1,138

6.1

+16.1

+18.5

512

2.86203.1676

3.6

+32.0

+9.08

Apparel Business

Achieving ¥10 billion in PALETTE Sales
 Relocated bases to Kansai from 2010 and pushed forward a strategy to entrench the Group’s
dominant position in the area 10-year net increase in the number of stores: 29; sales growth: ¥5.1 billion
Trends in PALETTE Sales and the Number of Stores(Millions of yen)

Net sales(Number of stores)

Number of stores

12,000120

10,715
10,000

8,919

100

9,433

8,3388,000

6,000

4,000

5,603
51

5,899
53

6,282
57

6,847

7,097

80

7,438
80
7160

5861

7360

65

40

2,000

2000

FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020（2012/2）（2013/2）（2014/2）（2015/2）（2016/2）（2017/2）（2018/2）（2019/2）（2020/2）（2021/2）

9

Overview of Financial Position and Cash Flows(Consolidated)

Total assets, liabilities, and net worth stood at ¥53.0 billion, ¥13.4 billion, and ¥39.5 billion, respectivelyCash flows from operating activities: substantial improvement in the fiscal year under review following
income taxes paid of ¥6.9 billion in the previous fiscal yearCash flows from financing activities: Repurchase of own shares of approximately ¥0.6 billion and cash
dividends paid of around ¥1.7 billion as a part of shareholders returns



Solid balance sheet with a high shareholders’ equity ratio; free cash flows of roughly ¥4.4 billion withstrengths in generating cash

Financial Position

Cash Flows
As of February 28, 2021

¥53.0 billion¥39.5 billion

Total net assets

Total assets

Total liabilities¥13.4 billion(Millions of yen)

FY2019(2020/2)

FY2020(2021/2)

Increase(Decrease)

Operating cash
flows

2,433

6,633

+4,200Investingcash flows

72(2,169)(2,241)

Financing cashflows(5,468)(2,515)+2,953Free
cash flows

2,505

4,464+1,959
10

Overview of Capital Investment as well as Depreciation
and Amortization (Consolidated)
Capital investment: ¥0.70 billion Depreciation and amortization: ¥1.02 billion

FY2019 (2020/2)

FY2020 (2021/2)
YoY(Millions of yen, %)Actual Results

Capitalinvestment

Actual Results

880703

FY2019 (2020/2)

FY2020 (2021/2)
YoY(Millions of yen, %)Actual Results

Depreciation andamortization

(177)

1,243

Actual Results

1,026(217)11Status of Store Openings
 Jewelry Business: Net decrease owing to the closure of two brands in Japan and withdrawal
from the China market
 Apparel Business: Steady progress in opening PALETTE stores; net increase of seven stores
ApparelBusiness

Jewelry Business

国内

FY2019(2020/2)

FY2020
ActualResults(2021/2)

Total
Overseas

PALETTE

183

3732591309120101132164061

175080255

Roadsidebutique

Departmentstore

Bridal Shop

Fashion
Building

Fiscalyearend271

4070

Storesopened110Stores
closed01

Fiscalyearend

371

Total

12Status of the Number of Domestic Brand Stores in theJewelry Business
4ºC

FY2019(2020/2)

FY2020
ActualResults(2021/2)

4ºC
BRIDAL

canal 4ºC

EAU
DOUCE
4℃

MAISONJEWELL

Jewelry
Total

Luria4℃

Total

Fiscalyear-end

83

4049

21519825223

Storesopened20100303Storesclosed10575182543

Fiscalyear-end

84

4045

1401830183* Composite stores that handle multiple brands are recorded as a single store by each individual brand.
* Refers to the internal relocation of five stores within 4ºC store openings/closings13

Shareholder Return Policy, Cash Dividends
Proactively undertaking the repurchase of own shares while continuing to emphasize consecutive increases
in cash dividends
 Repurchase of 300,000 of the Company’s own shares (approximately ¥0.6 billion) in
the fiscal year ended February 28, 2021
(undertook the repurchase of own shares for a third consecutive fiscal year) Annual cash dividend of ¥81 per share for the fiscal year ended February 28, 2021,
up ¥1 per share compared with the previous fiscal year
(10th consecutive fiscal year of cash dividend increase)

FY2018 (2019/2)

FY2019 (2020/2)

FY2020 (2021/2)

Annual dividends per share (Yen)

7580

81

Payout ratio (%)

78.1

71.3

108.0

＜Reference：Management indicators (Net income before the amortization of goodwill )＞FY2018 (2019/2)

FY2019 (2020/2)

FY2020 (2021/2)

ROE (%)

6.1

8.0

5.3

EPS (Yen)

115.5

134.6

97.9

Payout ratio (%)

64.9

69.2

82.7
14

Contents
Ⅰ. Overview and Summary of Fiscal 2020, the Fiscal Year Ended February 28,2021
Ⅱ．Strategic Approach and Business Results Forecasts for Fiscal 2021

Fiscal 2021 Initiatives
Jewelry Business(1)Strengthen the competitiveness of 4ºC fashion jewelry products(2)Improve the ability of 4ºC BRIDAL specialty stores to attract customers(3)Build engagement with customers by utilizing the CRM system(4)Strengthen online measures
Apparel Business(1)Everyday fashion business PALETTE: Open 10 new stores; substantially
increase sales by expanding PALETTE memberships and increasing thefixed customer base(2)Apparel Manufacturing Business: Increase sales through design andproduct proposals that accurately capture the needs of consumer
16Jewelry Business

Strengthen the Competitiveness of 4ºC Fashion Jewelry Products
 Roll out leading 4ºC fashion jewelry collections including Sakura Collection2021 andNoble of Water
 Enhance support and a sense of affinity from women; secure sales growth by expanding
gift as well as own use purchase

4ºC Noble of Water

17

Jewelry Business

Improve the Ability of 4ºC BRIDAL Specialty Stores to AttractCustomers
Implement measures aimed at attracting customers through various media including Zexy and other magazines, TV
commercials, and online advertisingEstablish a competitive advantage by strengthening the competitiveness of products including traceability diamonds

Strengthen competitiveness to capture rebound demand attributable to the postponement of wedding ceremonies

4ºC BRIDAL Aqua Lily18

Jewelry Business

Build Engagement with Customers by Utilizing the CRM System
 Strengthen engagement by utilizing the CRM system; expand the number of members(Number of members: Approximately 350,000 as of February 28, 2021 ⇒ 600,000 (target) asof February 28, 2022)
 Strengthen proposals targeting key events in each customer’s life including birthdays andanniversaries; increase the repeat rate

19

Jewelry Business

Strengthen Online Measures Reinforce store front relationships through various measures including inventory
coordination and efforts to enhance order and customization services
 Develop specialty online product lines and open new stores at outside malls
 Initiate a project geared toward brand site renewal by March 2022

20

Apparel BusinessApparel Manufacturing Business:
Design and Product Proposals that Accurately Capture the Needs of Consumers
Strengthen planning capabilities and information dissemination ability by appointing influencers

Expand uniform product initiatives by leveraging the competitive advantage of production in BangladeshEstablish supply chain management stability through online management

Chubby Arasa (around thirty) Hina
Bloger/Instagrammer/Youtuber
About 100,000 Instagram followers
Other contract influencers

miey （420,000 followers）
 Pilates trainer
 Mainly post body makeup exercise videosaya （256,000 followers ） Instagrammer who works in the sales position at aninfrastructure company Posting work techniques and interiors with the concept of“work and life in a feminine and polite manner”
Hina Original brand “LAPOCIA”

21

Apparel Business

Expand Sales by Accelerating the Opening of PALETTE StoresAccelerate the strategy to entrench the Group’s dominant position in the Kansai area by opening newstores (10 stores for the full fiscal year); improve the precision of trading zone analysis
Expand PALETTE memberships; secure existing store growth by increasing the fixed customer base(number of members: 370,000 → 410,000)

Improve the cost of sales ratio through direct procurement from overseas manufacturer

PALETTE store opening area in the Kansai area

Kansai dominant
strategy promotion
area22

Consolidated Business Results Forecasts
for Fiscal 2021 (1)Net sales: Jewelry Business recovery; increase in revenue by expanding the opening of PALETTE stores
Operating income: Substantial recovery projected in the Jewelry Business from the suspension of businessand shortening of operating hours in the previous fiscal year coupled with the temporary downturn
attributable to the impact of a third wave of infections from mid-November

Net sales: ¥42,000 million (+6.5% YoY )Operating income: ¥3,350 million (+21.0 % YoY)
Ordinary income: ¥3,700 million (+15.8% YoY) Net income: ¥2,500 million (+54.1% YoY)
(Millions of yen)

Net sales
39,449Operating income

42,000Ordinary income

Net income

3,700

3,350

2,500

3,195
2,767
1,622

+6.5%

FY2020
FY2021
Actual Results Results Forecasts+21.0%+15.8%FY2020
FY2020
FY2021
FY2021
Actual Results Results Forecasts Actual Results Results Forecasts+54.1%FY2020
FY2021
Actual Results Results Forecasts

23Consolidated Business Results Forecastsfor Fiscal 2021 (2)FY2020 (2021/2)(Millions of yen, %)FY2021 (2022/2)（％）

Results

Full-year
forecasts

YoY（％）

Increase(Decrease) (%)

Net sales

39,449100.0

42,000

100.0

+6.5

Gross profit

21,29454.0

23,00054.8+8.0

Gross profit margin54.0

Selling, general andadministrative expenses

18,52747.0

19,65046.8+6.1

Amortization ofgoodwill

496

1.3

496

1.2

±0

Operating income

2,767

7.0

3,350

8.0

+21.0

Ordinary income

3,195

8.1

3,700

8.8

+15.8

Net income

1,622

4.1

2,500

6.0

+54.1≪ Reference ≫54.8

FY2020 (2021/2)+0.8

FY2021 (2022/2)

YoY

Operating income before
the amortization ofgoodwill

3,263

8.3

3,846

9.2

+17.8

Net income before theamortization of goodwill

2,118

5.4

2,996

7.1+41.5* Operating income before the amortization of goodwill = operating income + goodwill amortization; net income before theamortization of goodwill = profit attributable to owners of parent + goodwill amortization

24

Consolidated Business Results Forecasts by Segment for Fiscal 2021
(Figures are after accounting for intrasegment net sales and transfers)

Jewelry BusinessProjecting net sales of ¥21.5 billion and operating income of ¥2.6 billion
 Anticipating a recovery from the impact of COVID-19 during April and May as well as the third wave ofinfections on brick-and-mortar stores together with e-commerce growth Adopting a conservative approach toward existing store forecasts in light of operating conditions
 Forecasting an improvement in profitability on the back of business restructuring efforts undertaken
during fiscal 2020

Apparel Business
Projecting net sales of ¥20.5 billion and operating income of ¥1.0 billion
 Work to substantially expand net sales through existing store growth by opening 10 new stores andincreasing PALETTE memberships
 Plans to double uniform volume, a new business area, in the Apparel Manufacturing Business(¥250 million→¥500 million)
FY2020 (2021/2)(Millions of yen, %)Jewelry BusinessApparel Business

ActualFY2021 (2022/2)
Forecast

YoY

Net sales

20,641

21,500+4.2

Operating income

2,139

2,600+21.6

Net sales

18,807

20,500+9.0

896

1,000+11.6

Operating income

25Plans for Store Openings and Closures
 Jewelry Business: Plan to open one Canal 4ºC store Apparel Business: Plan to open 10 PALETTE stores
ApparelBusinessJewelry BusinessJapan
Roadsidebutique

FY2020ActualResults(2021/2)

FY2021Forecast(2022/2)

Total

Department
store

Bridal Shop

Fashion
Building

PALETTE

Overseas

Fiscalyearend3684064

175

80

255

Storesopened00011

1011Storesclosed0000022

Fiscalyearend

368

40

65

1768826426

Plans for the Number of Domestic Brand Storesin the Jewelry Business
4ºC
BRIDAL

4ºC

FY2020 Actual
Results (2021/2)

FY2021 Forecast(2022/2)EAU DOUCE
4ºC

canal 4ºC

Total

Fiscal year-end

84404514183

Stores opened

00101

Stores closed

00000

Fiscal year-end

84404614184* Composite stores that handle multiple brands are recorded as a single store by each individual brand.

27

Outlook for Shareholder Returns in Fiscal 2021
 Anticipating an eleventh consecutive fiscal year of cash dividend growth; plans topay an annual cash dividend of ¥83 per share (up ¥2 per share YoY)

FY2020 (2021/2)

FY2021 (2022/2) Forecast

Annual dividends per share (Yen)

81.0

83.0

EPS (Yen)

75.0

117.5

Payout ratio (%)

108.069.8

Total return ratio (%)

139.1

－28

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.