CONSOLIDATED FINANCIAL REPORTFISCAL 2021（Japanese GAAP）(March 1, 2021 to February 28, 2022)
April 14, 2022
YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number
8008.
Representative:
Inquiries:

Hidetoshi Masuda, President and Representative Director
Masahiko Nishimura, Director and Executive Officer responsible for finance
Tel: +81-3-5719-3429
URL: https:// yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 26, 2022
Fiscal 2021 Securities Report filing date (planned): May 27, 2022
Dividend payment commencement date (planned): May 27, 2022
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 2021 (March 1, 2021 to February 28, 2022)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Net Sales

Operating Income%

Millions of yen%

Millions of yen

Profit Attributable to
Owners of Parent

Ordinary Income%

Millions of yen%

Millions of yen

FY 202138,050

(3.5)

1,721

(37.8)

2,293(28.2)

1,490

(8.1)

FY 2020

39,449(12.3)

2,767(30.4)

3,195(25.9)

1,622(34.5)(Note) Comprehensive income: FY 2021: ¥5,112 million (129.2%)
Net Income Per
Share

FY 2020: ¥2,230 million (90.6%)

Net Income Per
Share (Diluted)

Yen

Ordinary Income
to Total Assets

ROE

Yen

%

%

Ordinary Income
to Operating
Revenues%

FY 2021
69.56
—
3.6
4.2
4.5
FY 2020
75.00
—
4.1
6.0
7.0
(Reference) Operating income before the amortization of goodwill: FY 2021: ¥2,218 million
FY 2020: ¥3,264 million
YONDOSHI HOLDINGS has positioned operating income before the amortization of goodwill as an importantmanagement indicator.

(2) Consolidated Financial Position
Total Assets

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 2022

56,88442,91775.4

2,001.22

As of February 28, 2021

53,00039,54374.6

1,844.69(Reference) Shareholders’ equity: As of February 29, 2022: ¥42,893 million

As of February 28, 2021: ¥39,513 million(3) Consolidated Cash Flows
Operating Activities

Investing Activities

Financing Activities

Cash and Cash
Equivalents at the Endof the Period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY 2021

1,871

106

(1,816)2,900

FY 2020

6,633(2,169)(2,515)

2,732

― 1 ―

2.

Dividends
Cash Dividends per Share of Common Stock
End of 1Q End of 2Q End of 3Q

FY 2020
FY 2021
FY 2022 (planned)3.

End of 4Q

Cash
Dividends
Paid (Annual)

AnnualDividend
Payout Ratio(Consolidated)

Cash Dividends
to Net Assets(Consolidated)

Yen

Yen

Yen

Yen

Yen

Millions of yen

%

%

—
—
—

40.50
41.50
41.50

—
—
—

40.50
41.50
41.50

81.00
83.00
83.00

1,752
1,784

108.0
119.3
98.8

4.4
4.3

Forecast of Consolidated Results for FY 2022 (March 1, 2022 to February 28, 2023)(% 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

Operating Income

Profit attributable toowners of parent

Ordinary Income

Net Income per
ShareMillions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

19,500

9.7

850

114.2

1,000

39.7

650

131.9

30.33

41,500

9.1

2,700

56.8

3,000

30.8

1,800

20.8

84.00

(Reference) Forecast EPS before the amortization of goodwill for the full FY 2022 is ¥107.16.

Notes(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): No(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: No
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, 2022: 24,331,356 shares
As of February 28, 2021: 24,331,356 shares
2. Number of treasury stock
As of February 28, 2022: 2,897,922 shares
As of February 28, 2021: 2,911,168 shares
3. Average number of shares for the year
FY2021: 21,429,623 shares
FY2020: 21,635,806 shares
Notes:
1. The number of recorded treasury stock includes 83,926 of the Company’ shares held by the Shares Grant Trust for
Officers as of the end of the third quarter of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share, pleaserefer to “Per Share Information” on page 20.

― 2 ―(Reference) Overview of Non-Consolidated Performance

1. Non-Consolidated Performance for FY 2021 (March 1, 2021 to February 28, 2022)(1) Non-Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen

Ordinary Income%

Millions of yen%

Millions of yen

Profit attributable toowners of parent%

Millions of yen

FY 2021

2,376

(2.3)

1,958

(0.1)

2,005

(2.1)

1,924

(3.1)

FY 20202,431(68.3)

1,960(72.7)

2,049(71.5)

1,985(72.3)FY 2021
FY 2020Net Income Per
Share
Yen

Net Income Per
Share (Diluted)
Yen

89.80
91.77

—
—

(2) Non-Consolidated Financial Position
Total Assets
Millions of yen

Net Assets to Total
AssetsNet Assets

Net Assets per Share ofCommon StockMillions of yen%

Yen

As of February 28, 2022

38,00026,51169.7

1,235.77

As of February 28, 2021

38,00926,35769.3

1,229.10(Reference) Shareholders’ equity: As of February 28, 2022: ¥26,486 million

As of February 28, 2021: ¥26,327 million* The financial statement summary is not subject to auditing by certified public accountants or audit firms.
* Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
1. The forecasts of operating results and other items concerning the future contained in this document are 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 wellas cautionary notes on the use of operating results forecasts, please refer to the information from page 6.
2. YONDOSHI HOLDINGS plans to hold a briefing session for institutional investors and analysts on April
14, 2022 (Thursday). Plans are also in place to post a copy of the presentation materials used on the day on
the Company’s website immediately after the briefing session.

― 3 ―Contents
1.

Overview of Business Results

5(1)Overview of Business Results for the Fiscal Year Ended February 28, 2022

5

(2)

Overview of Financial Condition as of February 28, 2022

5

(3)

Overview of Cash Flows for the Fiscal Year Ended February 28, 2022

6

(4)

Outlook6(5)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2021 and Fiscal 2022

7

2.

Basic Stance on Selection of Accounting Standards

7

3.

Consolidated Financial Statements and Major Notes

8(1)

Consolidated Balance Sheets

8(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

10(Consolidated Statements of Income)

10(Consolidated Statements of Comprehensive Income)

11

(3)

Consolidated Statements of Changes in Net Assets

12

(4)

Consolidated Statements of Cash Flows

14

(5)

Notes to Consolidated Financial Statements

16(Notes Regarding Going Concern Assumptions)16(Additional Information)

16(Segment Information)

16(Per Share Information)

20(Important Subsequent Events)

21

4.

Other

21

― 4 ―

1. Overview of Business Results(1) Overview of Business Results for the Fiscal Year Ended February 28, 2022
In fiscal 2021, the fiscal year ended February 28, 2022, conditions in the Japanese economy remained severe
due to the intermittent declarations of states of emergency and priority measures to prevent the spread of disease
coinciding with the COVID-19 pandemic, and to restricted economic activity and depressed personal
consumption resulting from the rapid spread of infection following the emergence of new variants.
In the retail industry, the outlook remained clouded due to the cooling off in consumer sentiment resulting
from ongoing severity in the employment and income situations, as well as to the prolonged impact the COVID19 pandemic has had on reducing the movement of people.
Under these circumstances, every effort will be made to maximize the strengths of the Group to provide
products and services that exceed customer expectations while working toward continued growth against the
backdrop of a rapidly changing operating environment under the guidance of the Sixth Medium-Term
Management Plan, which began in fiscal 2021, the fiscal year ended February 28, 2022. In addition, the Company
is practicing CSR-based management to establish a highly trusted corporate group, and is working to enhanceenterprise value by strengthening internal controls, providing shareholder returns, and making medium to longterm investments linked to earnings growth.
As a result, for the subject fiscal year under review, net sales amounted to ¥38,050 million (down 3.5% YoY),
with operating income of ¥1,721 million (down 37.8% YoY), ordinary income of ¥2,293 million (down 28.2%
YoY), and profit attributable to owners of parent of ¥1,490 million (down 8.1% YoY). Operating income before
the amortization of goodwill, which has been designated an important management indicator, amounted to¥2,218 million (down 32.0% YoY).
Operating results by business segment were as follows.
Jewelry Business
The F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group’s Jewelry
Business, experienced a difficult operating environment due to the continued impact of the COVID-19 pandemic.
In particular, bridal jewelry struggled due to the temporary decline in the number of couples becoming married.
In addition, the Group also saw a reactionary increase in personnel expenses, a portion of which was recorded
as an extraordinary loss during the previous fiscal year, which was a factor in lower operating income. On a
positive note, captive demand from female customers grew by double digits due to ongoing brand value
investment.
Accounting for each of the aforementioned, net sales amounted to ¥18,424 million (down 10.7% YoY), while
operating income came in at ¥1,130 million (down 47.2% YoY).
Apparel Business
Retailer age Co., Ltd., which operates the everyday fashion brand PALETTE, achieved record-high results forboth net sales and operating income due to the success of promotional activities and 25th anniversary events, aswell as to the opening of eight new stores.
The AS'TY Group continued to focus on strengthening product planning capabilities despite a temporary
slump in demand due to the impact of the COVID-19 pandemic.
As a result, net sales in the Apparel Business segment amounted to ¥19,626 million (up 4.3% YoY), with
operating income of ¥889 million (down 0.8% YoY).
(2) Overview of Financial Condition as of February 28, 2022
(Current Assets)
Current assets as of the end of the fiscal year under review stood at ¥14,899 million, down ¥717 million
compared with the end of the previous fiscal year. Major movements included a decrease in raw materials andsupplies of ¥345 million.
(Noncurrent Assets)
Noncurrent assets came to ¥41,985 million as of February 28, 2022, an increase of ¥4,601 million comparedwith the previous fiscal year-end. While the balance of goodwill declined ¥496 million, this increase was mainly
due to an increase in investment securities of ¥5,548 million.

― 5 ―(Current Liabilities)
Current liabilities stood at ¥5,447 million as of the end of the fiscal year under review, down ¥1,355 million
compared with the end of the previous fiscal year. This decrease was mainly due to the decrease in accrued
consumption taxes of ¥580 million.
(Noncurrent Liabilities)
Noncurrent liabilities were ¥8,519 million as of February 28, 2022, an increase of ¥1,864 million comparedwith the balance as of February 28, 2021. This increase was essentially due to the upswing in deferred tax
liabilities of ¥1,929 million.
(Net Assets)
Total net assets as of the end of the fiscal year under review came to ¥42,917 million, up ¥3,374 million
compared with the end of the previous fiscal year. This increase was mainly due to growth of ¥3,702 million in
the valuation difference on available-for-sale securities.
(3) Overview of Cash Flows for the Fiscal Year Ended February 28, 2022
Cash and cash equivalents as of the end of the fiscal year under review stood at ¥2,900 million, an increase of¥167 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥1,871 million, down ¥4,762 million compared with theprevious fiscal year. In the fiscal year under review, the major cash inflows were net income before income taxesof ¥2,234 million and depreciation and amortization, a non-funded item, of ¥831 million. The principal cash
outflow was income taxes paid of ¥1,602 million.
(Cash Flows from Investing Activities)
Net cash provided by investing activities came to ¥106 million, a turnaround of ¥2,276 million compared withnet cash used in investing activities in the previous fiscal year. The main cash outflows were attributable to thepurchase of investment securities of ¥2,532 million, while proceeds from redemption of investment securities
amounted to ¥2,500 million and repayments of time deposits to ¥500 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥1,816 million, down ¥699 million compared with the previous
fiscal year. This largely reflected outflows for cash dividends paid of ¥1,761 million.
(4) Outlook
The retail sector is expected to continue to experience residual impacts of COVID-19. Given the risk of
downward pressure on corporate earnings due to higher raw material costs and a further cooling off in consumer
sentiment due to soaring prices, operating conditions are expected to remain difficult.
Under these circumstances, every effort will be made to maximize the strengths of the Group to provide
products and services that exceed customer expectations while targeting continued growth against the backdrop
of a changing operating environment during the fiscal year ending February 28, 2023, the second year of the
Sixth Medium-Term Management Plan.
In addition to further enhancing brand value and strengthening profitability in the mainstay Jewelry Businesssegment, the YONDOSHI HOLDINGS Group will build a robust business portfolio by expanding store openings
and promoting existing store growth in the Apparel Business segment.
Moreover, energies will be directed toward practicing sustainable management to establish a highly trusted
corporate group, and further enhancing enterprise value by strengthening internal controls, providing shareholder
returns, and making medium to long-term investments linked to earnings growth.
As far as business results forecasts for the fiscal year ending February 28, 2023, are concerned, net sales areprojected to come in at ¥41,500 million, up 9.1% compared with the fiscal year under review. From a profit
perspective, operating income is expected to total ¥2,700 million, a year-on-year increase of 56.8%. Ordinary
income is forecast to reach ¥3,000 million, an improvement of 30.8% year on year. Profit attributable to ownersof parent is estimated to jump to ¥1,800 million, 20.8% higher than the fiscal year ended February 28, 2022.
Designated an important management indicator, operating income before the amortization of goodwill is
projected to come in at ¥3,197 million, up 44.1% year on year.

― 6 ―(5) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2021 and Fiscal 2022
The YONDOSHI HOLDINGS Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group maintains the basic policy of delivering stable and sustainable cash dividends.
At the same time, the Group adopts a flexible policy toward the purchase of treasury stock as a part ofcomprehensive efforts to increase the level of returns to shareholders.
The Group has also established a target DOE, a core indicator for measuring shareholder returns, of at least
4%, and aims to achieve an annual dividend of ¥100 per common share in the future.
Based on this policy, YONDOSHI HOLDINGS plans to pay a fiscal year-end cash dividend of ¥41.50 per
common share. Together with the interim cash dividend paid of ¥41.50 per common share, the full fiscal year
cash dividend for the fiscal year under review will therefore come in at ¥83 per common share. This will enable
the Company to achieve its DOE target of 4.3%.
Turning to dividends for the fiscal year ending February 28, 2023, YONDOSHI HOLDINGS plans to pay aninterim and fiscal year-end cash dividend of ¥41.50 per common share for a full fiscal year cash dividend of ¥83
per common share. As far as the Company’s retained earnings are concerned, YONDOSHI HOLDINGS will
work to secure the internal reserves necessary to reinforce its management structure in response to anincreasingly competitive environment, cultivate new business, and pursue business development through avariety of vehicles including M&As. Through these means, the Company will make every effort to improve theGroup’s profitability while bolstering its management and business platforms.
2. Basic Stance on Selection of Accounting Standards
The YONDOSHI HOLDINGS Group prepares its consolidated financial statements in accordance with Japanese
Generally Accepted Accounting Principles. With respect to International Financial Reporting Standards (IFRS),
the YONDOSHI HOLDINGS Group will respond adequately with consideration of the situation in Japan andoverseas.

― 7 ―3. Consolidated Financial Statements and Major Notes(1) Consolidated Balance Sheets(Millions of yen)
End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

3,232
2,587
7,718
285
1,081
90
397
226
(3)

2,900
2,445
7,713
293
736
92
488
232
(4)

15,616

14,899

4,982
5,492
28
510

4,545
5,492
18
411

11,013

10,467

2,730
75
1
124

2,234
35
1
252

2,932

2,523

18,489
250
2
1,618
436
487
1,764
27

24,037
244
1
1,637
431
492
1,796
24

417
(55)

342
(51)

23,43828,99437,383

41,98553,00056,884ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade
Merchandise and finished goods
Work in process
Raw materials and supplies
Advance payments-trade
Accounts receivable-other
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net
Land
Lease assets, net
Other, net
Total property, plant and equipment
Intangible assets:
Goodwill
Lease assets
Right of trademark
Other
Total intangible assets
Investments and other assets:
Investment securities
Guarantee deposits
Long-term loans receivable
Deferred tax assets
Real estate for investment, net
Net defined benefit asset
Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and other
Other
Allowance for doubtful accounts
Total investments and other assets
Total noncurrent assets
Total assets― 8 ―(Millions of yen)
End of the Fiscal Year Ended
February 28, 2021
(As of February 28, 2021)

End of the Fiscal Year Ended
February 28, 2022
(As of February 28, 2022)

3,148
54
643
269
25
2,661

2,919
46
353
196
10
1,920

6,802

5,447

58
328
3,861
497
123
1,428
356

12
312
5,791
514
146
1,400
341

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Lease obligations
Income taxes payable
Provision for bonuses
Provision for directors’ bonuses
Other
Total current liabilities
Noncurrent liabilities:
Lease obligations
Long-term guarantee deposited
Deferred tax liabilities
Net defined benefit liability
Provision for directors' stock benefits
Asset retirement obligations
Other
Total noncurrent liabilities
Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders’ equity

6,654

8,519

13,457

13,9662,486
7,208
31,978(6,215)

2,486
7,196
31,707(6,175)35,45835,215

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Revaluation reserve for land
Foreign currency translation adjustments
Remeasurements of defined benefit plans

4,315
8
(233)
75
(110)

8,018
8
(233)
1
(117)

Total accumulated other comprehensive income

4,055

7,677

29

24

39,54342,91753,00056,884

Subscription rights to shares
Total net assets
Total liabilities and net assets― 9 ―(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Millions of yen)
Fiscal 2020
(March 1, 2020 to

Fiscal 2021
(March 1, 2021 to

February 28, 2021)

February 28, 2022)

Net sales
Cost of Sales

39,44918,15538,05017,983Gross profit

21,29420,066

Selling, general and administrative expenses

18,527

18,345

Operating income

2,767

1,721

Foreign exchange gains
Reversal of allowance for doubtful accounts
Subsidy income
Other

115
175
73
5
－
35
50

79
188
73
32
0
162
65

Total non-operating income

455

602

2
－
4
8
3
2
4
－
2

0
3
4
1
－
－
2
10
5

Non-operating income
Interest income
Dividends received
Rent of real estate for investment

Non-operating expenses
Interest expenses
Loss on disposal of inventories
Depreciation on investments in real estateManagement cost on real estate for investment
Commission for purchase of treasury shares
Provision of allowance for doubtful accounts
Loss on cancellation of insurance policies
Depreciation of inactive non-current assets
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of investment securities
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Subsidies for employment adjustment
Reversal of loss on liquidation of subsidiaries
Reversal of foreign currency translation adjustment
Total extraordinary income
Extraordinary loss
Impairment loss
Loss on closing of stores
Allowance for absence from work
Loss on liquidation of brands
Loss on valuation of investment securities
Loss on liquidation of subsidiaries

27

29

3,195

2,293

22
－
52
463
28
－

106
13
－
64
－
60

567

245

232
27
405
121
63
6

243
－
61
－
－
－

Total extraordinary losses

857

304

Net income before income taxes

2,905

2,234

Income taxes ― current
Income taxes ― deferred

1,182
100

825
(82)

Total income taxes

1,282

743

Net income

1,622

1,490

Profit attributable to owners of parent

1,622

1,490

― 10 ―

Consolidated Statements of Comprehensive Income(Millions of yen)
Fiscal 2020
(March 1, 2020 to

Fiscal 2021
(March 1, 2021 to

February 28, 2021)
Income before minority interests
Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Revaluation reserve for landRemeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent― 11 ―

February 28, 2022)
1,622

1,490

721
6
18
(71)
(67)

3,702
(0)
(73)
－
(6)

607
2,230

3,622
5,112

2,230

5,112

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2020 (March 1, 2020 to February 28, 2021)(Millions of yen unless otherwise stated)
Shareholders’ equity

Common stock

Capital surplus

2,486

7,223

Balance at the end of previous period

Retainedearnings

Total
shareholders’equityTreasury stock

32,108(5,751)

36,066

Changes of items during the period
Dividends from surplus(1,752)

Profit attributable to owners of parent

1,622(1,752)
1,622

Purchase of treasury shares
Disposal of treasury shares

(14)

(621)

(621)

157

142

Net changes in items excluding shareholders’equity during the period
Total
Balance at the end of current period

—

(14)

(130)

(463)

(608)

2,486

7,208

31,978(6,215)35,458

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

3,594

Deferred
gains orlosses onhedges

Revaluation
reserve forland
2Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

56

(43)

(161)

Total
accumulated
othercomprehensive

Subscrip-tion
rights tosharesTotal net
assetsincome3,447

74

39,588(1,752)
1,622
(621)
142
721

6

(71)

18

(67)

607

(44)

563

721

6

(71)

18

(67)

607

(44)

(45)

4,315

8

(233)

75

(110)

4,055

29

39,543― 12 ―

Fiscal 2021 (March 1, 2021 to February 28, 2022)(Millions of yen unless otherwise stated)
Shareholders’ equity

Common stock

Capital surplus

2,486

7,208

Balance at the end of previous period

Retainedearnings

Total
shareholders’equityTreasury stock

31,978(6,215)35,458Changes of items during the period
Dividends from surplus(1,761)

Profit attributable to owners of parent

1,490(1,761)
1,490

Purchase of treasury shares
Disposal of treasury shares

(11)

(0)

(0)

40

28

Net changes in items excluding shareholders’equity during the period
Total
Balance at the end of current period

—

(11)

(271)

(40)

(242)

2,486

7,196

31,707(6,175)35,215

Accumulated other comprehensive income
Valuationdifferenceonavailablefor-salesecurities
Balance at the end of
previous period
Changes of items during
the period
Dividends fromsurplusProfit attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesNet changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

4,315

Deferred
gains orlosses onhedges

Revaluation
reserve forland
8Foreigncurrencytranslation
adjustments

Remeasurementsof defined benefit
plans

75

(110)

(233)

Total
accumulated
othercomprehensive

Subscrip-tion
rights tosharesTotal net
assetsincome4,055

29

39,543(1,761)
1,490
(0)
28
3,702

(0)

—

(73)

(6)

3,622

(4)

3,617

3,702

(0)

—

(73)

(6)

3,622

(4)

3,374

8,018

8

(233)

1

(117)

7,677

24

42,917― 13 ―

(4) Consolidated Statements of Cash Flows(Millions of yen)
Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

Fiscal 2021
(March 1, 2021 to
February 28, 2022)

Cash Flows from Operating Activities:
Net Income before income taxes

2,905

2,234

Depreciation and amortization

1,026

831

Impairment loss

232

243

Amortization of goodwill

496

496

Increase (decrease) in allowance for doubtful accounts

4(4)

Increase (decrease) in provision for bonuses

41

(72)

Gain on reversal of share acquisition rights

(52)

―

Allowance for absence from work

405

61

Subsidies for employment adjustment

(463)

(64)

Subsidy income

(35)

(162)

Increase (decrease) in net defined benefit liability

(12)

2

Increase (decrease) in other provision

44

8

(291)

(268)

2

0

Foreign exchange losses (gains)

4

(15)

Loss (gain) on sales of property, plant and equipment

―

(13)

Loss (gain) on sales of investment securities

(22)

(106)

Loss on disposal of inventories―

3

Reversal of foreign currency translation adjustment

―

(60)

Decrease (increase) in notes and accounts receivable ― trade

384

145

Loss (gain) on valuation of investment securities

63―

Decrease (increase) in inventories

1,001

339

Increase (decrease) in notes and accounts payable ― trade

(752)

(228)

Increase (decrease) in accrued consumption taxes

338

(508)

Increase (decrease) in advances received

(322)

(81)

Increase (decrease) in accounts payable - other

(341)

2

Interest and dividends income
Interest expenses

Decrease (increase) in other assets

270

54

Increase (decrease) in other liabilities

(45)

(190)

Subtotal

4,884

2,647

Interest and dividends income received

283

275

Interest expenses paid

(2)

(0)

Subsidies for employment adjustment received

463

64

Proceeds from subsidy income

35

162

(405)

(61)

Income taxes paid

(1,334)(1,602)

Income taxes refund

2,709

386

Net cash provided by (used in) operating activities

6,633

1,871

Allowance for absence from work paid

― 14 ―

(Millions of yen)
Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

Fiscal 2021
(March 1, 2021 to
February 28, 2022)

Cash Flows from Investing Activities:
Payments into time deposits

(500)

―

Proceeds from withdrawal of time deposits―

500

Purchase of property, plant and equipment

(656)

(436)

Proceeds from sales of property, plant and equipment

0

27

(64)

(162)

(1,009)(2,532)88

249

Proceeds from redemption of investment securities

―

2,500

Payments of long-term loans receivable(0)―

Collection of long-term loans receivable

10

Purchase of long-term prepaid expenses

(18)

(20)

Other payments

(164)

(121)

Other proceeds

154

101

(2,169)106

Repayment of long-term loans payable

(82)

―

Purchase of treasury stock

(624)

(0)

14

0

(1,752)(1,761)

(69)

(54)

(2,515)(1,816)(1)

5Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities

Net cash provided by (used in) investing activities
Cash Flows from Financing Activities:

Proceeds from sales of treasury stock
Cash dividends paid
Other payments
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents

1,946

167

Cash and cash equivalents at beginning of period

785

2,732

2,732

2,900

Cash and cash equivalents at end of period― 15 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.
(Additional Information)(Stock Compensation Plan for Directors)
Under its 68th annual shareholders meeting held on May 17, 2018, the Company introduced a stockcompensation plan (hereinafter, the “Plan”), with eligible persons the Company’s directors (excluding directors
who are audit and supervisory committee members) and directors who are audit and supervisory committee
members (excluding outside directors), as well as directors and corporate auditors (excluding outside corporate
auditors) of the Company’s major group companies from November 28, 2018.
i. Summary of the transaction
The Plan is a stock compensation plan to grant the Company’s shares to eligible directors of eligible companies
in accordance with rules for granting trust-based stock compensation to corporate officers as determined by theeligible companies. The Company will contribute funds to the trust, and the trust will use these funds to acquire
the Company’s shares, and grant them to eligible directors. In principle, directors and other officers will receive
the Company’s shares at the time of retirement.
ii. The Company’s own shares held in the Trust
The Company’s own shares held in the Trust are recorded as treasury stock under net assets at their book value
in the Trust (excluding the amount of ancillary expenses). The book value and number of shares of such treasury
stock was ¥144 million, for 67,136 shares at the end of the previous consolidated fiscal year, and ¥168 million,
for 83,926 shares at the end of the subject consolidated fiscal year.
(Accounting Estimates)
While difficult to predict when COVID-19 will dissipate and the extent of its impact, accounting estimates are
based on the assumption that conditions will gradually recover and that the effects of the pandemic will easeover 2022.
Of note, because the timing of a return to a normal state from the COVID-19 crisis remains unclear, factors
such as the future spread of the infection, and conditions surrounding a return to a normal situation, could havea considerable impact on consolidated results.
(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using the segregatedfinancial information available within each segment to determine the allocation of management resourcesand evaluate business results.
Based on the major products handled, the YONDOSHI HOLDINGS Group has identified the Jewelry
Business and the Apparel Business as its two reporting segments.
(1) Jewelry Business
F.D.C. Products Inc. and its subsidiary companies engage in the comprehensive development of brandbusinesses. This includes the design, manufacture and sale of various products focusing mainly on jewelry.
The F.D.C. Products Group’s principal brands include 4°C, Canal4°C, and EAUDOUCE4°C.
(2) Apparel Business
AS’TY Inc. and its subsidiary companies engage in apparel business development activities.
Responsible for the manufacturing and apparel functions that draw on its design and marketing capabilities,
the AS’TY Group maintains an overseas production network in such countries as China, Bangladesh andVietnam while marketing products mainly through major apparel outlets, specialty stores and generalmerchandise stores. age Co., Ltd. is active in the retail business focusing mainly on women’s clothes,
fashion accessories and practical clothing. The company’s is largely undertaken in Western Japan.

― 16 ―

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.
3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(Millions of yen)
Reporting Segments

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

20,64118,80739,449―39,449

0

221

221

(221)

―

20,642
2,139
24,86719,029896
27,041

39,671
3,036
51,909

(221)
(268)
1,091

39,4492,767
53,000

659

340

999

26

1,026

365

344

709

12

722

Notes:
1. (1) The adjustment amount of minus ¥268 million for segment income mainly includes amortization of goodwill totaling
minus ¥496 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥502 million and eliminations of inter-segment transactions of ¥730 million.
(2) The adjustment amount of ¥1,091 million for segment assets is mainly comprised of an inter-segment offset amount
totaling minus ¥12,159 million, corporate assets of ¥10,519 million and the balance of unamortized goodwill of ¥2,730 million
that are not allocated to each reporting segment. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits) that are not attributable to individual reporting segments.
(3) The adjustment amount of ¥26 million for depreciation and amortization relates to corporate assets that are not attributable
to individual reporting segments.
(4) The adjustment amount of tangible and intangible asset increase of ¥12 million 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.

Fiscal 2021 the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(Millions of yen)
Reporting Segments

Net sales
Net sales to outside
customers
Intrasegment net sales andtransfers
Total
Segment income
Segment assets
Other items
Depreciation
Increase in property, plantand equipment andintangible assets

Amount recordedon consolidated
quarterlystatements ofincome (Note 2)

Adjustment
amount(Note 1)

Jewelry BusinessApparel Business

Total

18,424

19,62638,050―38,050

0

180

180

(180)

―

18,424
1,130
24,98319,806889
32,532

38,231
2,019
56,515

(180)
(298)
368

38,0501,721
56,884

464

339

804

26

831

123

335

459

13

473

Notes:
1. (1) The adjustment amount of minus ¥298 million for segment income mainly includes amortization of goodwill totaling― 17 ―

minus ¥496 million, general administrative expenses that are not attributable to individual reporting segments amounting tominus ¥447 million and eliminations of inter-segment transactions of ¥645 million.
(2) The adjustment amount of ¥368 million for segment assets is mainly comprised of an inter-segment offset amount totaling
minus ¥12,424 million, corporate assets of ¥10,558 million and the balance of unamortized goodwill of ¥2,234 million thatare not allocated to each reporting segment. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits) that are not attributable to individual reporting segments.
(3) The adjustment amount of ¥26 million for depreciation and amortization relates to corporate assets that are not attributable
to individual reporting segments.
(4) The adjustment amount of tangible and intangible asset increase of ¥13 million 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 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
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 net sales to outside customers based in Japan of all business segments represented over 90%of the Company’s total net sales in the consolidated statements of income, geographical information 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, geographicalinformation has been omitted.
3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% ormore of the total operating revenues posted in the consolidated statement of income.
Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)
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 net sales to outside customers based in Japan of all business segments represented over 90%of the Company’s total net sales in the consolidated statements of income, geographical information 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, geographicalinformation has been omitted.
3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% ormore of the total operating revenues posted in the consolidated statement of income.

― 18 ―

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

221

Adjustment
amount

Total
11

Total

―

232

232

Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)(Millions of yen)
Reporting Segments
Jewelry BusinessImpairment loss

Apparel Business

167

Adjustment
amount

Total
75

243

―

Total

243

(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized Goodwill
by Reporting Segment)
Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
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 million and ¥2,730 million, respectively. The amounts of goodwill amortized and balanceof unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)
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 million and ¥2,234 million, respectively. The amounts of goodwill amortized and balanceof unamortized goodwill related to goodwill that arose at the time of stock exchange.
(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2020, the Fiscal Year Ended February 28, 2021 (March 1, 2020 to February 28, 2021)
Not applicable.
Fiscal 2021, the Fiscal Year Ended February 28, 2022 (March 1, 2021 to February 28, 2022)
Not applicable.

― 19 ―

(Per Share Information)(Yen)
Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

Net assets per share
Earnings per share

Fiscal 2021
(March 1, 2021 to
February 28, 2022)

1,844.69
75.00

2,001.22
69.560Notes: 1. No statement is made regarding diluted per share net profit for the period because dilutive shares possessing adilutive effect do not exist.
2. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

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)

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

Fiscal 2021
(March 1, 2021 to
February 28, 2022)

1,622
—

1,490
—

1,622

1,490

21,635,806

21,429,623

Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

Fiscal 2021
(March 1, 2021 to
February 28, 2022)

July 6, 2015
Board resolution
The 8th issuance of new sharesubscription rights
Common stock:80,700 shares

June 8, 2016
Board resolution
The 9th issuance of new sharesubscription rights
Common stock: 6,500 shares

June 8, 2016
Board resolution
The 9th issuance of new sharesubscription rights
Common stock: 6,500 shares

June 8, 2016
Board resolution
The 10th issuance of newshare subscription rights
Common stock:19,300 shares

June 8, 2016
Board resolution
The 10th issuance of newshare subscription rights
Common stock:19,300 shares

November 22, 2018
Board resolution
The 11th issuance of newshare subscription rights
Common stock:34,500 shares

November 22, 2018
Board resolution
The 11th issuance of newshare subscription rights
Common stock:34,500 shares

November 22, 2018
Board resolution
The 12th issuance of newshare subscription rights
Common stock:28,200 shares

November 22, 2018
Board resolution
The 12th issuance of newshare subscription rights
Common stock:28,200 shares

July 8, 2020
Board resolution
The 13th issuance of newshare subscription rights
Common stock:21,000 shares

July 8, 2020
Board resolution
The 13th issuance of newshare subscription rights
Common stock:21,000 shares

July 8, 2020
Board resolution
The 14th issuance of newshare subscription rights
Common stock:31,500 shares

July 8, 2020
Board resolution
The 14th issuance of newshare subscription rights
Common stock:31,500 shares― 20 ―

iii. The basis for calculating net assets per share is presented as follows:(Millions of yen unless otherwise stated)
Fiscal 2020
(March 1, 2020 toFebruary 28, 2021)

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 2021
(March 1, 2021 to
February 28, 2022)

39,54342,917

29

24

(29)
39,513(24)
42,893

21,420,188

21,433,434

iv. Company stock remaining in the YONDOSHI HOLDINGS Group Employees’ Shareholding Association Trust(hereinafter referred to as “the Trust”) and the Shares Grant Trust for Officers recorded as Treasury Stock in the
Company’s Shareholders’ Equity is included in the number of treasury stock to be deducted when computing the
average number of shares for the period for earnings per share calculation purposes as well as the number of treasury
stock to be deducted from the total number of shares issued and outstanding as of the end of the period for net assets
per share calculation purposes.
The number of treasury stock to be deducted when computing the average number of shares for the period forearnings per share calculation purposes was 62,992 shares for fiscal 2020 and 67,642 shares for fiscal 2021. The
number of treasury stock to be deducted from the total number of shares issued and outstanding as of the end of theperiod for net assets per share calculation purposes was 67,136 shares for fiscal 2020 and 83,926 shares for fiscal
2021.

(Important Subsequent Events)
Not applicable

4. Other(1) Changes in Managementi. Change in Representative
・ Not applicable
ii. Other Changes (Effective date: May 26, 2022)• Candidate for promotion to director (Excluding directors who are Audit & Supervisory Board
members)
Executive Director and Managing Executive Officer responsible for Finance
Masahiko Nishimura(Current Position: Director and Executive Officer responsible for Finance)• Candidate for new appointment as a director and Audit & Supervisory Board member
Naoki Kodama (Current Position: Representative M&S Consulting
Note: Mr. Kodama is a candidate for appointment to the positions of outside director and an
independent committee member with respect to the Company’s takeover defense measures.
• Planned retirement of a director who is an Audit & Supervisory Board member
Hideo Sakakibara
Note: Mr. Sakakibara is an outside director.
iii. Changes in the Management of subsidiary companies
F.D.C. Products Co., Ltd. (Effective date: May 13, 2022)• Planned promotion of a director
Executive Director and Managing Executive Officer responsible for Finance
Masahiko Nishimura(Current Position: Director and Executive Officer responsible for Finance)
age Co., Ltd. (Effective date: May 9, 2022)• Planned promotion of a director
Executive Director and Managing Executive Officer responsible for Marketing
Teruhiko Fukumoto(Current Position: Director and Executive Officer responsible for Marketing)• Planned retirement of a director
Sunao Katsuta― 21 ―