YONDOSHI HOLDINGS INC.
Prime Market, Tokyo Stock Exchange (8008)

Investors’ Presentation
Results for the Fiscal 2022
(The Fiscal Year Ended February 28, 2023)
April 14, 2023

Contents
I. Consolidated Business Results for Fiscal 2022, the Fiscal Year
Ended February 28, 2023
II. Responding to Changes in the Environment～ Improving Profits and Strengthening CompetitivenessIII.Consolidated Business Results Forecasts for Fiscal 2023,
the Fiscal Year Ending February 29, 2024
IV. Promoting Sustainability Management
Hidetoshi Masuda. President and Representative Director
YONDOSHI HOLDINGS INC.
Note: Amounts identified in this report are presented in millions of yen rounded down. Percentage figures are calculated from raw data.

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

2ContentsI.

Consolidated Business Results for Fiscal 2022, the Fiscal Year
Ended February 28, 2023

II. Responding to Changes in the Environment～ Improving Profits and Strengthening CompetitivenessIII. Consolidated Business Results Forecasts for Fiscal 2023,
the Fiscal Year Ending February 29, 2024
IV. Promoting Sustainability Management

3Consolidated Operating Results for Fiscal 2022
 Increases in revenue and earnings at the operating income and ordinary income levels
Net sales ¥39,500 million (Up 3.6% YoY) Operating income ¥1,970 million (Up 10.7% YoY)
Ordinary income ¥2,340 million (Up 2.1% YoY) Net income ¥1,140 million (Down 22.9% YoY)

Net sales

Operating income

Ordinary income

Net income

39,508(Millions of yen)

38,123
2,293

2,342

1,979

1,490

1,788

1,149

+3.6%

FY2021
ActualResults

FY2022
ActualResults+10.7%FY2021
ActualResults

FY2022
ActualResults+2.1%

FY2021
ActualResults

FY2022
ActualResults－22.9%FY2021
ActualResults

FY2022
ActualResults

Note: YONDOSHI HOLDINGS applied the “Accounting Standard for Revenue Recognition” (Accounting Standards Board of Japan Statement No. 29, March 31, 2020) from the beginning of the firstquarter of the fiscal year ended February 28, 2023. Figures for the third quarter of the fiscal year under review are after application of this accounting standard.

4Consolidated Operating Results for Fiscal 2022
 Results in line with revised figures announced on January 6, 2023
FY2021 (2022/2)

vs. Jan. 6

FY2022 (2023/2)

YoY

Revised
Forecasts(Millions of yen, %)ActualResults(%)

Jan. 6 Revised
Forecasts(%)

Increase

ActualResults(Decrease)(%)

Increase(Decrease)(%)

Net sales

38,123100.0

40,000100.039,508

100.0

+3.6

－1.2

Gross profit

19,67251.6

19,80049.5

19,727

49.9

+0.3

－0.4

－1.7

+0.4

Gross profit margin51.6

Selling, general andadministrative expenses

17,88446.9

17,80044.5

17,748

44.9

－0.8

－0.3

496

1.3

496

1.2

496

1.3

±0±0

Operating income

1,788

4.7

2,000

5.0

1,979

5.0

+10.7

－1.0

Ordinary income

2,293

6.0

2,350

5.9

2,342

5.9

+2.1

－0.3

Net income

1,490

3.91,100

2.8

1,149

2.9－22.9+4.5

Operating income before theamortization of goodwill

2,284

6.0

2,496

6.2

2,476

6.3+8.4－0.8

Operating income before theamortization of goodwill

1,987

5.2

1,596

4.0

1,645

4.2

－17.2

+3.1

Amortization of goodwill

49.9

49.5

Gross profit and SG&A
expenses declined 1.7
percentage points and 0.8 ofa percentage point,respectively, YoY due to theupswing in ApparelBusiness sales as a ratio of
total net sales and a change
in the accounting standard
for revenue recognition.

Firm trends in both theJewelry and Apparelbusinesses, increase inearnings

Incidence of animpairment loss on bridal
specialty stores of ¥542
million, decrease inearnings* 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

5Overview of Business Results by Segment～The Jewelry Business Despite an increase in revenue and earnings in the Jewelry Business, fell short ofinitial plans Bridal jewelry struggled under difficult conditions Various measures aimed at expanding female customers implemented successfully

FY2021 (2022/2)(Millions ofyen, %)ActualResults

FY2022 (2023/2)

Jan. 6
Revised
Forecasts

(%)

(%)

ActualResults(%)

YoYvs. Jan. 6
Revised
Forecasts

Increase(Decrease)(%)

Increase(Decrease)(%)

Net sales

18,497―18,500―18,587―+0.5+0.5

Operatingincome

1,197

6.5

1,300

7.0

1,356

7.3

+13.3

+4.3
6

Overview of Business Results by Segment～The Apparel Business Increase in revenue and earnings in the Apparel Business Fourth consecutive fiscal year of existing PALETTE store sales growth; opened 10 newstores, including four stores in the Kanto region for the first time Despite the impact of the weak yen and surge in cost of sales, orders increase in the Apparel
Manufacturing Business against the backdrop of highly price competitive production

FY2021 (2022/2)(Millions ofyen, %)ActualResults

FY2022 (2023/2)

Jan. 6
Revised
Forecasts

(%)

(%)

ActualResults(%)

YoY

vs. Jan. 6
Revised
Forecasts

Increase(Decrease)(%)

Increase(Decrease)(%)

Net sales

19,626―

21,500―20,921―+6.6－2.7

Operatingincome889

4.59304.3942

4.5

+6.0

＋1.37

Overview of Financial Position and Cash Flows(Consolidated) Total assets, liabilities, and net worth stood at ¥50.2 billion, ¥11.9 billion, and ¥38.2 billion,
respectively
 Shareholders’ equity ratio came in at 76.0%; maintained a sound financial standing Net cash provided by operating activities totaled ¥3.1 billion

Financial Position

Cash Flows(Millions of yen)

Total liabilities

11,996

Total assets

38,214

Total net assets

50,211(Millions of yen)

FY2021(2022/2)

FY2022(2023/2)

Increase(Decrease)

Operating cashflows

1,871

3,103+1,231

Investingcash flows

106(2,371)(2,477)

Financing cashflows(1,816)(1,834)(18)

Freecash flows

1,977732(1,245)

As of February 28, 2023

8

Allocation of Cash Flows Substantial increase in growth investments centered on the Jewelry Business Ongoing efforts to proactively provide shareholder returns(Millions of yen)

FY2022 (2023/2)

Growthinvestments
Operating cash flows
2,740 of 3,103

Shareholder
returns

YoYJewelry Business

559+435

Apparel Business394+58Subtotal

954+494

Cash dividends

1,786+24

Total

2,740+519
9

Store openings and closings in Fiscal 2022
 Jewelry Business: Consolidated bridal jewelry location
 Apparel Business: Opened 10 new PALETTE stores, including four in the Kanto
regionApparelBusinessJewelry Business

Japan
Roadsidebutique

FY2021
ActualResults(2022/2)

Total

Department
store

Bridal Shop

PALETTE

Fashion
Building

Total

Fiscalyearend

371

4057

171

86257

Storesopened032

5101020Storesclosed1518630

333

Fiscalyearend269245615193244

FY2022
ActualResults(2023/2)

10

Status of the Number of Domestic Brand Stores in theJewelry Business

4ºC4ºCEAU DOUCE
4℃

Canal4ºC

BRIDAL

Total

FY2021
Actual Results(2022/2)

Fiscal year-end

82

40

4314179

Stores opened

4240

10Stores closed

6184129

Fiscal year-end

80244313160

FY2022
Actual Results(2023/2)* Composite stores that handle multiple brands are recorded as a single store by each individual brand.
* Of the stores opened and closed, one 4ºC BRIDAL store was due to relocation within the same area, while three 4ºC stores andone Canal4ºC store were due to relocation within the same building.

11Issues and Measures

Issues

Improve BridalBusiness earnings

Strengthen
competitivenessMeasures⚫ Adopt a selection and focus approach
toward Bridal Jewelry stores⚫ Expand investment in urban-type stores⚫ Rebuild the 4ºC brand(1) Expand female customer support(change customer target)(2) Expand the e-commerce business(3) Promote efforts to capture newcustomers⚫ Expand the opening of PALETTE stores
12

ContentsI.

Consolidated Business Results for Fiscal 2022, the Fiscal Year
Ended February 28, 2023

II. Responding to Changes in the Environment～ Improving Profits and Strengthening CompetitivenessIII. Consolidated Business Results Forecasts for Fiscal 2023,
the Fiscal Year Ending February 29, 2024
IV. Promoting Sustainability Management

13Improve Earnings:
Adopt a Selection and Focus Approach toward Bridal Jewelry Stores
 Establish flagship stores through large-scale renovation of urban-type stores* Increase the efficiency of local stores through consolidation and revitalize
neighboring stores
Yokohama Landmark Plaza StoreGinza Store

Relocated to a high foot traffic site

To an FJ development and brand dissemination site

Toward brand value enhancement

14Improve Earnings:
Strengthen Competitiveness: Rebuild the 4ºC Brand
 Promote growth on the strength of overwhelming recognition, simple design, andattentive customer service
 Work to cultivate new customers by addressing changes in the environment* Data: Business results for fiscal 2021 → Plans for fiscal 2023
Men’s gifts

Brick-and-mortar stores

Free customers

Expand the female
customer base

Expand the e-commercebusiness

Promote efforts to capturenew customers¥2.8 billion ¥3.7 billion (133%)¥2.0 billion ¥2.4 billion (120%)

560,000 → 1,000,000 (178%)

15

Strengthen Competitiveness:
Expand Female Customer Support
 Roll out diverse collections and limited-edition products to meet the growing demand forpurchases for own use among women Strengthen the development of trend-related items in addition to mainstay rings andnecklaces Enhance the freshness of products and expand the fan customer base by expanding newproducts
Female Customer Fashion Jewelry Sales Growth Rate and Composition

Female customer
sales YoY40+10.1%+21.0%
3530
Composition

36.8％

Composition

2534.4％Composition

31.0％
20
Women

MenCouples

Women

MenCouples

Women

MenCouples

15

FY2021 (2022/2)

FY2022 (2023/2)

FY2023 (2024/2) (Forecast)16Strengthen Competitiveness:
Expand the e-commerce Business Put in place a mechanism that facilitates the simultaneous purchase of multiple
brands through a full site renewal
 Increase convenience through site renewal; develop new D2C brands
 Achieve continuous 10% annual growth
Develop D2C Brands

e-commerce Channel Sales Trends(Millions of yen)

2,467
2,2422,003

FY2021 (2022/2)

FY2022 (2023/2)

FY2023 (2024/2)(Forecast)

21

Strengthen Competitiveness:
Promote Efforts to Capture New Customers
 Number of LINE registered customers projected to exceed one million in thecurrent fiscal year Strengthen approach through data analysis
Number of Registered Members(Thousands)

1,100

1,000

1,000
900

807
800
700

570

600
500
400

335

300
200

102
1000
FY2019 (2020/2)

FY2020 (2021/2)

FY2021 (2022/2)

FY2022 (2023/2)

FY2023 (2024/2)(Forecast)25

Strengthen Competitiveness:
Expand the Opening of PALETTE Stores Continue to promote a Kansai dominant store opening strategy
 Steadily put in place a ¥20 billion sales structure and system Continue to open stores in the Kanto region; work to increase the top line by
expanding activities in commercial areas
Trends in PALETTE Sales, Operating Income, and the Number of Stores(Millions of yen, %)20,000

6.0

5.0

5.0

4.1
3.3
2.2
Operating margin

3.6

11,8153.9

4.0

14,30012,656

3.0

10,6609,414

2.0
1.0Net sales

Number ofStores

0.0

FY2019 (2020/2)

FY2020 (2021/2)

FY2021 (2022/2)

FY2022 (2023/2)

FY2023 (2024/2)(Forecast)

FY2026 (2027/2)(Forecast)

7380

869310213526

ContentsI.

Consolidated Business Results for Fiscal 2022, the Fiscal Year
Ended February 28, 2023

II. Responding to Changes in the Environment～ Improving Profits and Strengthening CompetitivenessIII. Consolidated Business Results Forecasts for Fiscal 2023,
the Fiscal Year Ending February 29, 2024
IV. Promoting Sustainability Management27

Operating Environment for Fiscal 2023

➢ In heralding the post-COVID-19 era in earnest, expectationsof an increase in consumption➢ Continued uncertainty surrounding the future in light of theimpact of the surge in resource and material prices as well as
successive price hikes➢ Continued harsh bridal jewelry market environment on theback of uncertainty surrounding a recovery in the number ofmarriages and intensifying competition

28

Consolidated Business Results Forecasts for Fiscal 2023
 Revenue and earnings projected to increase with net sales and operating income
forecast to reach ¥40.0 billion and ¥2.1 billion, respectively, on the back of Jewelry
Business structural reform and efforts to expand the opening of PALETTE stores

Net sales

Operating income

Ordinary income

Ordinary income(Millions of yen)

40,00039,508

1,979

2,100

2,342

2,500
1,300
1,149+1.2%

FY2022
ActualResults

FY2023Results
Forecast+6.1%

FY2022
ActualResults

FY2023Results
Forecast+6.7%

FY2022
ActualResults

FY2023Results
Forecast+13.1%FY2022
ActualResults

FY2023Results
Forecast

29

Consolidated Business Results Forecasts for Fiscal 2023
FY2022 (2023/2)(Millions of yen, %)FY2023 (2024/2)(%)

ActualForecast

YoY(%)

Increase(Decrease) (%)

Net sales

39,508100.0

40,000100.0+1.2

Gross profit

19,72749.9

20,00050.0+1.4

Gross profit margin

49.9

50.0

+0.1

Selling, general andadministrative expenses

17,74844.9

17,90044.8+0.9

Amortization ofgoodwill

496

1.3

496

1.2

±0.0

Operating income

1,979

5.0

2,100

5.3+6.1

Ordinary income

2,342

5.9

2,500

6.3+6.7

Net income

1,149

2.9

1,300

3.3

+13.1

≪ Reference ≫Operating income before
the amortization ofgoodwill

FY2022 (2023/2)
2,476

6.3

2,596

6.5

+4.9

Net income before theamortization of goodwill

1,645

4.2

1,796

4.5+9.2

FY2023 (2024/2)

YoY* 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

30

Consolidated Business Results Forecasts by Segment for Fiscal 2023
(Figures are after accounting for intrasegment net sales and transfers)

Jewelry BusinessNet sales and operating income estimated to come in at ¥17,700 million and ¥1,450 million,
respectively
Despite a decline in revenue owing to the consolidation of bridal jewelry stores, projecting an
increase in earnings by increasing profit margins
 Strengthen competitiveness by expanding the female customer base as well as the ecommerce business and promoting efforts to capture new customers

Apparel BusinessNet sales and operating income estimated to come in at ¥22,300 million and ¥1,050 million,
respectively
 Drive the top line by expanding the opening of PALETTE stores
 Increase profit margins in the Apparel Manufacturing Business by strengthening overseas
manufacturing as well as product proposal capabilities
FY2022 (2023/2)

FY2023 (2024/2)(Millions of yen, %)ActualJewelry BusinessApparel Business

Forecast

YoY

Net sales

18,587

17,700－4.8

Operating income

1,356

1,450+6.9

Net sales

20,921

22,300+6.6

942

1,050+11.4

Operating income

31Plans for Store Openings and Closures
 Jewelry Business: Enhance brand value by renovating and refurbishing existing
stores Apparel Business: Plan to open 10 new PALETTE stores
ApparelBusiness

Jewelry Business
By channel
Roadsidebutique

FY2022
ActualResults(2023/2)

FY2023
Forecast

Department
store

Bridal Shop

Total
PALETTE

Fashion
Building

Total

Fiscalyearend

2692456

151

93244

Storesopened

141171017Storesclosed0311516Fiscalyearend

370

2456153102255(2024/2)

32

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

4ºC

FY2022
Actual Results

EAU DOUCE
4ºC

Canal 4ºCTotal

Fiscal year-end

80244313160

Stores opened

51

107Stores closed

31105

Fiscal year-end

82244313162(2023/2)

FY2023
Forecast(2024/2)* Composite stores that handle multiple brands are recorded as a single store by each individual brand.
* Of the stores opened and closed, one 4ºC BRIDAL store was due to relocation within the same area.

33

Shareholder Returns Policy, Cash DividendsWork to raise the level of shareholder returns through the payment of stable and continuous cash
dividends and expeditious repurchase of own shares
Shareholder return target: Dividend on equity (DOE) ratio of 4% or moreWork to realize a future annual cash dividend of ¥100 per common share➢ DOE of 4.4% at an annual cash dividend of ¥83 per common share for the fiscal year ended February
28, 2023➢ Plans to pay an annual cash dividend of ¥83 per share for the fiscal year ending February 29, 2024
DOE (Dividend on Equity)

(%)

65

4.7

4.5

4.4

4.3

4.4

19.2

20.2

21.2

22.2

23.2

24.2 (Forecast)

FY2018(2019/2)

FY2019(2020/2)

FY2020(2021/2)

FY2021(2022/2)

FY2022(2023/2)

FY2023
Forecast(2024/2)

4.3

432(Millions of yen, %)Annual dividends per share (Yen)DOE (Dividend on equity) (*1)

Payout ratio (%)
Actual dividend payout ratio (*2)

75
4.3
78.1
64.9

80
4.5
71.3
59.4

81
4.4
108.0
82.7

83
4.3
119.3
89.5

*1 DOE (Dividend on Equity) = Total dividends ÷ Shareholders' equity*2 Actual dividend payout ratio: Total annual dividends / Net income before amortization of goodwill

83
4.4
154.8
108.8

83
4.7
136.9
99.1
34

Contents
I.

Consolidated Business Results for Fiscal 2022, the Fiscal Year
Ended February 28, 2023

II. Responding to Changes in the Environment～ Improving Profits and Strengthening CompetitivenessIII. Consolidated Business Results Forecasts for Fiscal 2023,
the Fiscal Year Ending February 29, 2024
IV. Promoting Sustainability Management

35

Promoting Sustainability Management:
Sustainable Growth Target sustainable growth by strengthening management and business platforms
 Focus on human resources development based on the Company’s basic philosophy

Enhancing people’s lifestyles and realize a sustainable society

F.D.C.Products

ASTY

AGE

Planning andmanufacture ofjewelry

Manufacture andapparel and bags
Wholesale of apparel

Operation of ageneral clothingchainStrengthen management and business platforms geared toward sustainable corporate growthESG

Human resources
development

Diversity

Fundamental Policy for Sustainability
Basic Philosophy

Contribute tosociety

Respect humanrights

36

Promoting Sustainability Management:
TCFD Recommendations
 Pursue measures realize a sustainable world and lessen the impact of climate change Announced support for the TCFD recommendations and participation in the TCFD
Consortium; began the disclosure of information in line with the framework

Announced support for the TCFD
recommendations
Announced support for the TCFD recommendation to provide disclosure for items related toclimate change, including governance, strategies, risk management, indices, and targets

Participation in the TCFD Consortium
Work to gather information and respond accordingly by participating in the Consortium, which
serves as a forum for companies and financial institutions that support the TCFD recommendation
pursue initiatives and discuss initiatives in a concerted mannerDisclosure of information in line with
the TCFD recommendations
Assess the potential risks and opportunities that climate change could present for the Group’sbusiness and provide disclosure with the aim of responding appropriately in line with the TCFD
recommendations framework37