CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）
FIRST HALF OF THE FISCAL YEAR ENDINGFEBRUARY 28, 2015
(March 1, 2014 to August 31, 2014)
October 6, 2014
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 in charge of operations
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Quarterly Securities Report filing date (planned): October 15, 2014
Supplemental materials prepared for quarterly financial results: Yes
Holding of quarterly financial results meeting: Yes
Dividend payment commencement date (planned): November 7, 2014
(Millions of yen rounded down)

1. Consolidated Operating Results for the First Half of Fiscal 2014
(March 1, 2014 to August 31, 2014)(1) Consolidated Operating Results (Cumulative)(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)
Operating Revenues
Operating Income
Ordinary Income
Net Income
Millions of yen％

FY2014 First Half

23,8155.1

FY2013 First Half

22,6550.1％

Millions of yen％

Millions of yen

％

2,260

19.2

2,558

13.1

1,542

18.8

1,896

(3.3)

2,263

(1.5)

1,297

23.9

Millions of yen

Note: Comprehensive income 2Q FY2014: 1,761 million yen (12.8%) 2Q FY2013: 1,561 million yen (84.6%)
Net Income
per Share

Net Income per
Share after Dilution
Yen

Yen

FY2014 First Half

56.44

56.32

FY2013 First Half

47.52

47.44

(2) Consolidated Financial Position
Total Assets
Millions of yen

August 31, 2014

Net Assets to Total
AssetsNet Assets per Share%Yen

45,40876.2

1,644.78

44,13675.4

1,609.45

Net Assets
Millions of yen

59,56358,478February 28, 2014
(Reference)
Shareholders’ equity: August 31, 2014: 45,383 million yen
February 28, 2014: 44,116 million yen

2. Dividends
Dividends per Share
(Record Date)
Fiscal 2014
Fiscal 2015
Fiscal 2016
(Forecast)End of 1Q

End of 2Q

End of 3Q

AnnualYear-end

Yen

Yen

Yen

Yen

Yen

—
—

12.50
16.00

—

17.50

30.00

—

16.00

32.00

Note: Revision to dividend forecast for the second quarter of the fiscal year ending February 28, 2015: No-1-

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2015
(March 1, 2014 to February 28, 2015)(% figures for the full fiscal year represent year-on-year increase or decrease)
Net Income
Operating Income
Ordinary Income
Net Income
per Share

Net Sales
Millions of yen

Fiscal year
endingFebruary 28,
2015

51,500%

5.1

Millions of yen

%

5,400

10.1

Millions of yen

6,300

%

11.6

Millions of yen

3,750

%

Yen

17.8

137.21

Note: Revisions to consolidated operating forecasts for the second quarter of the fiscal year ending February 28,
2015: No

Notes
(1) Changes in Important Subsidiaries during the Period:(Changes in specified subsidiaries that caused changes in the scope of consolidation): No(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements: No(3) 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(4) Number of Shares Issued and Outstanding (Common Stock)
1. Total number of shares issued and outstanding (including treasury stock) as of theperiod-end:
August 31, 2014: 29,331,356 sharesFeb. 28, 2014: 29,331,356 shares
2. Total number of treasury stock as of the period-end:
August 31, 2014: 1,738,971 sharesFeb. 28, 2014: 1,920,288 shares
3. Average number of shares for the period (Cumulative total for the quarterly consolidated
period)FY2014 First Half: 27,330,036 shares
FY2013 First Half: 27,312,913 shares
Note: The number of recorded treasury stock is inclusive of 130,500 of the Company’s shares
held by the YONDOSHI HOLDINGS Employees’ Shareholding Association Trust Account asof the end of the quarterly period.
Regarding the Status of Quarterly Review Procedure Implementation
This financial report for the first half of fiscal 2014 is not subject to the quarterly review procedures
stipulated in the Financial Instruments and Exchange Act of Japan. As of the date of disclosure of thisreport, the review procedures for the quarterly financial statements under the Financial Instruments andExchange Act had not been completed.
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
based on 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 “Explanationof Consolidated Results Forecasts and Other Future Predictions” on page 5.

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Contents
1.

2.

Qualitative Information Regarding Consolidated Quarterly Business Results

4(1)

Explanation of Business Results

4(2)

Explanation of Financial Condition

5(3)

Explanation of Consolidated Results Forecasts and Other Future Predictions

5

Summary Information (Notes)

5(1)Changes in Important Subsidiaries During the Period

5(2)Application of Special Accounting Practices in the Preparation of the Quarterly

5

Consolidated Financial Statements(3)
3.

Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements

5Consolidated Quarterly Financial Statements

6(1)

Consolidated Quarterly Balance Sheets

6(2)

Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of

8Comprehensive Income
Consolidated Quarterly Statements of Income

Second Quarter Cumulative

Consolidated Quarterly Statements of Comprehensive Income(3)

Consolidated Quarterly Statements of Cash Flows(4)

Notes to Consolidated Quarterly Financial Statements

Second Quarter Cumulative

8
9
10(Notes Regarding Going Concern Assumptions)11(Notes Regarding Substantial Changes in Shareholders’ Equity)

11(Segment Information)

11

-3-

1. Qualitative Information on Business and Financial Results(1) Explanation of Business Results
During the first half (March 1, 2014 to August 31, 2014) of fiscal 2014, the fiscal year ending February 28,
2015, the Japanese economy continued its modest recovery trend, with improvements in corporate earnings
and the employment environment. This was despite concerns concerning such factors as the slowdown ingrowth in emerging economies, the effects of an increase in the consumption tax rate, and geopoliticalrisks.
In the retail industry, a sense of uncertainty about the future lingered. Despite the rush in demandin the lead up to the consumption tax rate hike, this uncertainty was largely attributable to subsequentcorrections by the market most notably through a downturn in personal consumption and inclement weather
conditions.
Under such conditions, in fiscal 2014, the final year of the third medium-term management plan,
the YONDOSHI HOLDINGS Group took steps to enhance its corporate value by practicing CSR-based
management to establish a highly trusted corporate group, strengthening internal controls, providing returns
to shareholders, and making medium- to long-term investments linked to earnings growth.
As a result, operating revenues for the first half of the fiscal year under review amounted to¥23,815 million (up 5.1% from the same period of the previous fiscal year). Operating income totaled¥2,260 million (up 19.2%), with ordinary income of ¥2,558 million (up 13.1%) and net income of ¥1,542
million (up 18.8%).
Operating income, ordinary income, and net income all reached record highs for the first half
period.
Note: Operating revenues are the sum total of net sales and other operating revenues.
Operating results by business segment were as follows.
The F.D.C. Products GroupThe F.D.C. Products Group posted record high figures for both sales and operating income, due mainly torobust results at existing mainstay 4ºC brand stores as well as aggressive efforts to open 4ºC BRIDAL andcanal 4ºC stores.
Accounting for these factors, segment operating revenues came to ¥12,704 million (up 14.0%
from the same period of the previous fiscal year). Operating income totaled ¥2,167 million (up 26.1%).
The AS’TY GroupThe AS’TY Group experienced strong results in its apparel manufacturing business owing largely to
successful efforts to strengthen its project planning capabilities. Due mainly to the difficult conditions
confronted by certain subsidiaries, however, sales and operating were both below levels recorded in thesame period of the previous fiscal year.
As a result, operating revenues in this business segment amounted to ¥4,610 million (down 5.1%
from the same period of the previous fiscal year). Segment operating income was ¥266 million (down
17.9%).
MISUZUMIZUZU Co., Ltd. took steps to scale back unprofitable locations while working to revitalize sales atexisting stores. Despite these endeavors, both sales and operating income were down year on year owing
mainly to the consumption tax rate hike and the impact of inclement weather.
As a result, operating revenues in this business segment were ¥2,510 million (down 12.5% fromthe same period of the previous fiscal year). For the period under review, the company incurred an
operating loss of ¥105 million (up from an operating loss of ¥89 million in the six-month period to August
31, 2013).
age
age Co., Ltd. achieved a year-on-year increase in sales as a result of a strong showing in the company’s
mainstay PALETTE brand everyday fashion item business and efforts to open new stores. Operating
income, however, declined year on year as the RAPPORT brand retail membership sale business struggled
under the effects of the consumption tax rate hike.
Taking into account these factors, segment operating revenues amounted to ¥3,989 million (up-4-5.6% from the same period of the previous fiscal year). The company reported an operating loss for theperiod of ¥14 million (compare to operating income of ¥58 million in the same period of the previous fiscal
year).
(2) Explanation of Financial Condition
Assets, Liabilities, and Net Assets
Total assets as of August 31, 2014 stood at ¥59,563 million, an increase of ¥1,084 million from the end of
the previous fiscal year. The major movements over this period were increases of ¥1,139 million in notes
and accounts receivable—trade and ¥376 million in property, plant and equipment against a decrease of¥570 million short-term investment securities. Total liabilities amounted to ¥14,154 million, a downturn of¥187 million from the end of the previous fiscal year. This downturn was largely attributable to the drop of¥540 million in income taxes payable. Total net assets as of the end of the period under review came to¥45,408 million, up ¥1,272 million from the end of the previous fiscal year. This mainly reflected theincrease of ¥1,043 million in retained earnings.
Cash Flows
Cash and cash equivalents as of the end of the period under review stood at ¥4,322 million, an increase of¥228 million from the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥538 million compared with net cash provided byoperating activities of ¥1,218 million in the previous fiscal year. The major cash inflow came from income
before income taxes of ¥2,612 million. This was partially offset by the principal cash outflow arising fromincome taxes paid of ¥1,411 million.
(Cash Flows from Investing Activities)
Net cash provided by investing activities totaled ¥287 million, a turnaround from net cash used in investing
activities of ¥354 million in the previous fiscal year. The primary cash inflow came from proceeds fromredemption of securities against the major cash outflow of purchase of noncurrent assets totaling ¥624
million.
(Cash Flows from Financing Activities)
Net cash used in financing activities came to ¥590 million up from net cash used in financing activities of¥338 million in the previous fiscal year. This largely reflected cash dividends paid of ¥499 million.
(3) Explanation of Consolidated Results Forecasts and Other Future Predictions
Earnings forecasts are unchanged from those announced on April 14, 2014.
2. Summary Information (Notes)(1) Changes in Important Subsidiaries during the Period
Not applicable(2) Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated
Financial Statements
Not applicable(3) Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
Not applicable-5-3. Consolidated Quarterly Financial Statements(1) Consolidated Quarterly Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Second Quarter ofFebruary 28, 2014

the Fiscal Year Ending(As of February 28, 2014)

February 28, 2015
(As of August 31, 2014)ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade643,415542,137

2,952,219

4,092,077

Short-term investment securities

4,850,000

4,280,000

Merchandise and finished goods

6,819,273

7,010,398

Work in process

728,965

668,517

Raw materials and supplies

678,745

673,340

Other current assets

950,047

866,519

Allowance for doubtful accounts(4,233)(3,236)

17,618,434

18,129,754

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

5,485,560

5,576,416

Land

5,549,208

5,541,605

Other, net
Total property, plant and equipment

759,536

1,052,846

11,794,305

12,170,869

6,206,310

5,958,058

Intangible assets:
Goodwill
Other intangible assets

660,815

643,964

Total intangible assets

6,867,126

6,602,022
17,690,068

Investments and other assets:
Investment securities

15,623,836

Prepaid pension cost

2,077,497

594,070

Other

5,078,118

4,493,840

Allowance for doubtful accounts(580,756)(117,547)

Total investments and other assets

22,198,696

22,660,431

Total noncurrent assets
Total assets-6-40,860,128

41,433,324

58,478,562

59,563,079

５．（要約）四半期連結財務諸表(Thousands of yen)
End of the Fiscal Year Ended

End of the Second Quarter ofFebruary 28, 2014

the Fiscal Year Ending(As of February 28, 2014)

February 28, 2015
(As of August 31, 2014)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade
Short-term loans payable

4,515,638

4,406,507―

100,030

Income taxes payable

1,366,588

825,844

Provision for bonuses

425,726

263,912

Provision for directors' bonuses

44,25031,688Other

3,508,120

4,005,024

Total current liabilities

9,860,324

9,633,006

Noncurrent liabilities:
Long-term loans payable

150,930―

Provision for retirement benefits

537,167

550,330

Provision for directors' retirement benefits

339,728

359,954

Asset retirement obligations

942,180

970,762

2,511,944

2,640,374

Other
Total noncurrent liabilities
Total liabilities

4,481,950

4,521,420

14,342,274

14,154,427

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,322,104

18,335,251

Retained earnings

24,364,402

25,407,611

Treasury stock(1,504,089)(1,513,458)

Total shareholders’ equity

43,668,937

44,715,924

Valuation difference on available-for-sale securities

648,981

868,391

Deferred gains or losses on hedges(10,415)

6,088

Revaluation reserve for land

(233,476)(233,476)

Other accumulated comprehensive income:

Foreign currency translation adjustments

42,83826,401

Total other accumulated comprehensive income

447,928

667,405

Subscription rights to shares
Total net assets
Total liabilities and net assets-7-

19,421

25,322

44,136,288

45,408,651

58,478,562

59,563,079

(2) Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements ofComprehensive Income
Consolidated Quarterly Statements of Income
Second Quarter Cumulative(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2014

February 28, 2015

(March 1, 2013 to(March 1, 2014 toAugust 31, 2013)

August 31, 2014)

Net sales

22,224,781

23,287,942

Cost of Sales

10,162,849

10,520,947

Gross profit

12,061,932

12,866,995

431,143427,099

Operating gross profit

12,493,075

13,294,095

Selling, general and administrative expenses

10,596,199

11,033,300

Operating income

1,896,875

2,260,794

Other operating revenue

Non-operating income
Interest income

4,244

6,989

Dividends received
Equity in earnings of affiliates

40,52041,731

248,797

177,661

Rent of real estate for investment

48,26750,970Foreign exchange gains

8,648

9,201

Other

25,67754,258

Total non-operating income

376,155

340,811

Interest expenses

2,015

1,201

Loss on insurance cancellation

1,914

―

Depreciation of real estate for investment

3,051

2,984

Management cost for real estate for investment

1,040

1,023

―

35,364Non-operating expenses

Commission for purchase of treasury stock
Other

1,975

2,079

Total non-operating expenses

9,997

42,653

2,263,034

2,558,952

Gain on sales of noncurrent assets

12,16347,797

Gain on sales of investments in real estates

21,974―――104,118

34,138

152,665

Ordinary income
Extraordinary income

Gain on liquidation of stocks of subsidiaries and affiliates
Other
Total extraordinary income

750

Extraordinary loss
Impairment loss

81,91170,350――20,147

Total extraordinary losses

81,911

99,378Net income before income taxes

Loss on closing of stores
Other

8,880

2,215,260

2,612,239

Income taxes ― current

606,668

870,957

Income taxes ― deferred

310,704

198,790

Total income taxes

917,373

1,069,747

1,297,887

1,542,492

Income before minority interests
Minority interests in income (loss)
Net income

-8-

(0)

―

1,297,888

1,542,492

Consolidated Quarterly Statements of Comprehensive Income
Second Quarter Cumulative(Thousands of yen)

Income before minority interests

First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2014

February 28, 2015

(March 1, 2013 to(March 1, 2014 toAugust 31, 2013)

August 31, 2014)

1,297,887

1,542,492

Other valuation difference on available-for-sale securities

199,674

143,464

Deferred gains or losses on hedges
Foreign currency translation adjustments(17,634)

16,39441,550(16,436)

40,49576,053

264,085
1,561,972

219,476
1,761,968

1,561,973

1,761,968(0)―

Other comprehensive income

Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests-9-(3) Consolidated Quarterly Statements of Cash Flows(Thousands of yen)First Half of theFirst Half of the

Fiscal Year Ended

Fiscal Year Ending

February 28, 2014

February 28, 2015

(March 1, 2013 to(March 1, 2014 toAugust 31, 2013)

August 31, 2014)

Cash flows from operating activities:
Income before income taxes

2,215,260

2,612,239

Impairment loss

81,91170,350

Increase (decrease) in allowance for doubtful accounts

4,114(464,205)

Increase (decrease) in provision for bonuses(260,140)(161,814)

Increase (decrease) in provision for retirement benefits(39,967)

1,496,590

Increase (decrease) in other provision(94,291)7,664Interest and dividends income(44,764)(48,721)

Interest expenses
Equity in (earnings) losses of affiliates

2,015

1,201

(248,797)(177,661)

Foreign exchange losses (gains)(4,762)(988)

Loss (gain) on sales of noncurrent assets
Loss (gain) on sales of investments in real estates(12,163)(47,797)(21,974)――(104,118)(1,069,967)(1,138,335)(585,301)(129,355)

450,789(108,250)

Loss (gain) on liquidation of stocks of subsidiaries andaffiliates
Decrease (increase) in notes and accounts receivable ―trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable ―trade
Increase (decrease) in accounts payable-other
Increase (decrease) in advances received

511,324

318,757

287,655(175,796)

Other, net

736,024(101,883)

Subtotal

1,906,966

1,847,874

Interest and dividends income received

99,146103,102

Interest expenses paid

(1,988)(1,201)

Income taxes paid

(785,871)(1,411,701)

Net cash provided by (used in) operating activities

1,218,253

538,075

Purchase of noncurrent assets(581,994)(624,186)

Proceeds from sales of noncurrent assets

128,560

57,000――(500,000)
1,400,000

Purchase of investment securities(9,491)(209,124)

Proceeds from sales of investments in real estates

63,361――

104,118

Cash flows from investing activities:

Purchase of securities
Proceeds from redemption of securities

Proceeds from liquidation of stocks of subsidiaries andaffiliates
Other
Net cash provided by (used in) investing activities

44,88960,025(354,674)

287,831(44,760)(50,900)

Cash flows from financing activities:
Repayment of long-term loans payable
Purchase of treasury stock

(377)

(741)

Proceeds from sales of treasury stock

106,51352,829Cash dividends paid

(328,440)(499,282)

Other, net(71,292)(92,671)

Net cash provided by (used in) financing activities(338,356)(590,766)

6,097(6,418)531,319

228,721

Cash and cash equivalents at beginning of period

2,111,769

4,093,415

Cash and cash equivalents at end of period

2,643,088

4,322,137

Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents- 10 -

(3) Notes to Quarterly Consolidated Financial Statements(Notes Regarding Going Concern Assumptions)Not applicable(Notes Regarding Substantial Changes in Shareholders’ Equity)
Not applicable(Segment Information)
Ⅰ The first half of the fiscal year ended February 28, 2014 (March 1, 2013 to August 31, 2013)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatements
of income(Note 2)

22,655,924―

22,655,924

99,629808,768(808,768)―

2,886,532

3,878,617

23,464,692(808,768)

22,655,924(89,079)

58,5842,013,168(116,293)

1,896,875

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUage

Total

11,148,320

4,859,061

2,869,555

3,778,987

19,015673,145

16,977

11,167,335

5,532,207

1,718,586

325,077

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥116,293 thousand for segment income or loss mainly includes corporate expenses thatare not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
2. Segment income or loss figures have been adjusted to operating income on the consolidated quarterly income
statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.
Ⅱ

The first half of the fiscal year ending February 28, 2015 (March 1, 2014 to August 31, 2014)
1. Information Regarding Sales and Income or Loss by Reporting Segment(Thousands of yen)

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
quarterlystatements
of income(Note 2)

23,815,042―

23,815,042

116,751

827,706(827,706)―

2,522,486

4,106,387

24,642,749(827,706)

23,815,042

105,398(14,472)

2,314,955(54,160)

2,260,794

Reporting Segments
F.D.C.
Products
group

AS’TY
group

MISUZUage

Total

12,704,682

4,610,652

2,510,072

3,989,635

22,290676,249

12,414

12,726,973

5,286,901

2,167,840

266,985

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers
Total
Segment income or loss

Notes:
1. The adjustment amount of minus ¥54,160 thousand for segment income or loss mainly includes corporate expenses that- 11 -

2.

are not allocated to individual reporting segments. Corporate expenses are primarily general administrative expenses not
attributable to reporting segments.
Segment income or loss figures have been adjusted to operating income on the consolidated quarterly income
statements.

2. Information Regarding Impairment Loss of Fixed Assets, Goodwill and Related Items by
Reporting Segment
There was no major impairment loss recorded during the period under review.

- 12 -