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

Investors’ Presentation
Results for the Fiscal 2015
(The Fiscal Year Ended February 29, 2016)
April 11, 2016

Contents
Ⅰ. Overview and Summary of the Fiscal 2015, the Fiscal Year Ended
February 29, 2016
Ⅱ. Results Forecasts for Fiscal 2016 as well as Priority Issues and Measures
Ⅲ. Progress under the 4th Medium-Term Management Plan

Hidenori Suzuki, 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.

Overview of Consolidated Operating Results
Increase in revenues and earnings; historic highs in operating income andnet income for a fourth consecutive accounting period; historic high inordinary income for a fifth consecutive accounting period

Net sales: ¥52,883 million (+4.3% YoY)
Operating income: ¥6,113 million (+11.8% YoY)
Ordinary income: ¥6,854 million (+10.8%) Net income: ¥4,277 million (+18.4%)+4.3%
52,88350,726

5,467

Net sales
FY2014
Actual Results+10.8%+11.8%
6,113

Operating income

FY2015
Actual Results

FY2014
Actual Results

FY2014 (2015/2)

4,277

6,854

6,186

3,612

Ordinary income

FY2015FY2014
Actual Results Actual Results

FY2015 (2016/2)

Net income

FY2015
Actual Results

FY2014
Actual Results

FY2015 (2016/2)

FY2015
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

ActualResults

(%)

Plans

(%)

Net sales

50,726100.0

52,500100.052,883

100.0

+4.3

+0.7

Gross profit

28,93757.0

30,35057.8

30,831

58.3

+6.5

+1.6

+1.3pt+0.5pt(Millions of yen, %)Gross profit margin (%)

57.0

ActualResults(Millions of yen)

+18.4%

(%)

58.3

57.8

Selling, general andadministrative (SG&A) expenses

23,46946.3

24,55046.8

24,717

46.7

+5.3

+0.7

Operating income

5,467

10.8

5,800

11.0

6,113

11.6

+11.8

+5.4

Ordinary income

6,186

12.2

6,700

12.8

6,854

13.0

+10.8

+2.3

3,612

7.1

4,277
8.1
+18.4
+4.3
4,100
7.8
(Note: Amount equivalent to previous operating revenues posted as net sales, effective from the fiscal year ending February 29, 2016.)
Net income3Improvement in Profit Margins (1)Improvement in the earnings structure; decrease in the breakeven point

60

55

54.1

54.8

49.1

49.4

54.9

55.9

57.0

56.6

58.3

50.6
50

45

47.5

46.2

47.0

46.6

2013/2

2014/2

46.3

46.7

2015/2

2016/240
2009/2

2010/2

2011/2

2012/2Gross Profit Margin

Operating Expenses ratio

4

Improvement in Profit Margins (2)Substantial increases in operating income margin, ordinary income margin
and ROE

14
11.5

12

10.1

10

8.3

8
6
4

4.5
4.4

2
0

12.2

1.9
2009/2

5.4

6.4

7.3

8.9

10.0

7.0

7.5

2013/2

2014/2

5.0

5.4

2.6

2.6

2010/2

2011/2

ROE

Operating Income Margin

10.8

13.0

11.6
9.4

8.1

5.1

2012/2

2015/2

2016/2

Ordinary Income Margin

5

Operating Income
Operating income: ¥6.11 billion (+11.8% YoY)
Operating income margin :11.6% (+0.8% YoY)
Cost of sales ratio
FY2014 FY 2015
43.0% ⇒ 41.7%－ 1.3pt(Millions of yen)

＋2,157－ 263

SG&A expenses to net sales ratio
FY2014 FY 201546.3 % ⇒ 46.7%+0.4pt－ 1,248
ActualInitial plan

5,467

5,800

OperatingincomemarginOperatingincomemargin10.8%
Operating income

FY2014(2015/2)

6,113

11.0%
Net sales

Cost of sales

SG&A expenses

Operatingincomemargin

11.6%

Operating income

FY2015(2016/2)

6

Trends in Quarterly Business Results
Steady growth in both net sales and operating income
Trends in Net Sales by Quarter
2Q

1Q(Millions of yen)

4Q

3Q

10,551 11,386

11,618 12,672 12,306

10,959 11,239 11,037 11,142 11,742

11,443 11,735 11,803 12,095 12,251

'12/2

'14/2

'12/2

'12/2

'13/2

'15/2

'16/2

'13/2

'14/2

'15/2

'16/2

'13/2

'14/2

'15/2

'16/2

13,738 13,876 14,543 14,815

'12/2

'13/2

'14/2

Trends in Operating Income by Quarter
1Q

1,117 1,091

2Q
1,560

'13/2

'14/2

'15/2

3Q

1,348

'16/2

'16/2

(Millions of yen)

4Q
1,919

607
'12/2

'15/2

16,583

692

843

805

700

855

813

875

1,090 1,043 1,172

'12/2

'13/2

'14/2

'15/2

'16/2

'12/2

'13/2

'14/2

'15/2

'16/2

2,163

2,732

1,310 1,451

'12/2

'13/2

'14/2

'15/2

'16/2

FY2014(2015/2)

1Q
FY20152Q
FY20153Q
FY20154Q
FY2015FY2015(2016/2)

Increase /(Decrease)

Net sales

50,726

12,306

11,742

12,251

16,58352,883

2,157

+4.3

Gross profit

28,937

7,083

6,549

7,190

10,00730,831

1,894

+6.5

Operating income

5,467

1,348

855

1,172

2,737

6,113

646

+11.8

(Millions of yen)

YoY

7

Overview of Business Results by Segment
 The Jewelry Business Record highs in both net sales and profits
 Existing store sales increased 6.7% YoY with results exceeding plans;
this was mainly due to successful efforts aimed at broadening operatingzones and expanding the range of items
 Successful efforts aimed at conducting 4ºC BRIDAL fairs; continued
progress in expanding the number of canal4ºC and Luria 4ºC stores+11.7%
28,410+16.7%
31,731

Net sales
FY2014
Actual Results

FY2015
Actual Results

5,026

5,863

ActualResults

6,017

5,161

Ordinary income

FY2014
Actual Results

FY2014
Actual Results

FY2015
Actual Results

3,883
Net income

FY2015
Actual Results

FY2014
Actual Results

FY2015 (2016/2)

(%)

Plans

(%)

(Millions of yen)

2,991

Operating income

FY2014 (2015/2)(Millions of yen, %)+29.8%+16.6%

ActualResults(%)

FY2015
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

28,410100.030,170100.0

31,731

100.0

+11.7

+5.2

Operating income

5,026

17.7

5,361

17.8

5,863

18.5

+16.7

+9.4

Ordinary income

5,161

18.2

5,493

18.2

6,017

19.0

+16.6

+9.6

Net income

2,991

10.5

3,400

11.3

3,883

12.2

+29.8

+14.2

(Note: Figures are before accounting for intrasegment net sales and transfers)

8Overview of Business Results by Segment
 The Apparel Business Apparel and SPA businesses struggled owing largely to the weak yen andunseasonable weather
 Robust trends in the everyday fashion brand PALETTE business; steady progressin the opening of new stores－5.6%
25,21723,804

Net sales
FY2014
Actual Results

FY2015
Actual Results－61.8%－42.9%

523

830
474
Ordinary income

FY2014
Actual Results

FY2014
Actual Results

FY2014 (2015/2)(Millions of yen, %)ActualResults

228
Net income

FY2015
Actual Results

FY2014
Actual Results

FY2015 (2016/2)

(%)

Plans

ActualResults(%)(Millions of yen)

594

200
Operating income
FY2015
Actual Results－61.7%(%)

FY2015
Actual Results

YoY

vs. Plan

Increase(Decrease) (%)

Increase(Decrease) (%)

25,217100.0

25,014100.0

23,804

100.0

－5.6

－4.8

Operating income

523

2.1

556

2.2

200

0.8

－61.8

－64.1

Ordinary income

830

3.3

803

3.2

474

2.0

－42.9

－40.9

Net income

594

2.4

433

1.7

228

1.0

－61.7

－47.4

Net sales(Note: Figures are before accounting for intrasegment net sales and transfers)

9Overview of Financial Position and Cash Flows (Consolidated) Total assets, liabilities, and net assets stood at ¥60.5 billion, ¥15.3 billion, and¥45.2 billion, respectively
 Purchased one million share of treasury stock at an acquisition cost of ¥2.6 billion;
improved the ratio of net assets to total assets
 Increase in free cash flows of ¥1,630 million to ¥4,774 million
Financial Position

Cash Flows
As of February 29, 2016

Total assets¥60.5 billion¥45.2 billion

Total liabilities Total net assets¥ 15.3 billion

FY2014(2015/2)

FY2015(2016/2)

Increase(Decrease)

Operatingcash flows

4,329

5,319

990

Investingcash flows(1,184)

(545)

(639)

Financing
cash flows(3,298)(3,739)441

Freecash flows

3,144

4,774

1,630

(Millions of yen)10

Overview of Capital Investment as well as Depreciation
and Amortization (Consolidated)
Capital investment: ¥1.53 billion

Depreciation and amortization: ¥1.16 billion

FY2014 (2015/2)(Millions of yen, %)YoY
Actual Results

Capital investment(including longterm prepaid
expenses)(cash flow basis)

FY2015(2016/2)
Actual Results

1,672

1,533

FY2014 (2015/2)

FY2015 (2016/2)
YoY(Millions of yen, %)Actual Results

Depreciation andamortization

－139

1,097

Actual Results

1,161

+64
11

Overview of Fiscal 2015
In fiscal 2015, revenues increased for a fifth consecutive accounting period;
posted historic highs at each major level of earnings
Jewelry Business Increase in revenues and earnings; operating income increased for a seventh
consecutive accounting period
 Substantial growth in existing stores sales, which climbed 6.7% YoY;
this was mainly due to successful efforts aimed at expanding the range of items
and rolling out composite stores Robust trends in 4ºC BRIDAL sales on the back of successful efforts aimed
at conducting a variety of fairs
 Opening of new canal4ºC and Luria 4ºC stores also contributed to
expanding sales
 EC Business sales increased 40% YoY with the pace of growth exceeding plans
Apparel Business While the AS’TY Group’s apparel manufacturing business continues to enjoy
steady progress in the shift of production to Bangladesh, conditions remaindifficult due to a slump in the market and the weak yen
 The apparel SPA business undertaken by MISUZU Co., Ltd. met with difficult
trends in market conditions; this was largely the result of unseasonable weather
 Steady trends in the everyday fashion brand business undertaken by
age Co., Ltd.; continued progress in the opening of new stores
12

Status of Store Openings and Closures
 Undertook the opening of stores at a pace that exceeded plans in the Jewelry
Business Rationalized unprofitable stores in the Apparel Business
Jewelry BusinessApparel BusinessJapan

FY2014(2015/2)

FY2015
ActualResults(2016/2)

BridalShop

Fashion
Building

Overseas

MISUZU
Co., Ltd.

Total*

ageCo., Ltd.

Roadsidebutique

Department
store

Fiscalyearend

6

90

37

60

193

6

76

77

336

Storesopened

0

5

2

19

26

0

2

6

33

Storesclosed

0

7

0

4

11

0

11

7

29

Fiscalyearend

6

88

39

75

208

6

67

76

340

Total

(Note: Data after adjust for age Co., Ltd. sales agent stores)

13

Status of the Number of Domestic Brand Stores in the Jewelry Business Increase also in jewelry stores as well as the conversion to large composite stores
 Increase in the number of stores handling bags as well as sales area expansion on
the back of successful efforts aimed at expanding the range of items
4ºC

4ºC

FY2014(2015/2)

FY2015
ActualResults(2016/2)

BRIDAL

canal 4ºC

Other*

Jewelry
Total

4ºC bags

Luria 4ºC

Bag Total

Fiscalyear-end

88

44

36

23

191

36

7

43

Storesopened

6

4

11

10

31

16

13

29

Storesclosed

1

0

2

7

10

3

1

4

Fiscalyear-end

93

48

45

26

212

49

19

68

※1. Other: EAUDOUCE 4ºC, RUGIADA, MAISON JEWELL, deux et deux
※2. Composite stores that handle multiple brands are recorded as a single store by each individual brand.

14

Return of Profits to Shareholders
 With a basic stance of providing stable and continuous dividends,
YONDOSHI HOLDINGS also maintains a flexible approach toward
the acquisition of treasury stock⇒ YoY increase of ¥8 per share to ¥40 per share in the annual dividend for fiscal 2015
⇒ Undertook the purchase of one million shares of treasury stock in August 2015
⇒ The dividend payout ratio came in at 85.8% substantially exceeding the target(Millions of yen)

4,500
4,000
3,500
3,000
2,500
2,000
1,500
1,000
500
0

(%)

3,612

3,183

4,277

82.2

100.0

85.8
2,600
2,080

25.8

1,070

899

80.0

Net income (left axis)

60.0

Total dividends (left axis)

40.0

Total amount of treasury
stock purchase (left axis)

20.0

855

Total payout ratio (right axis)

0.0

FY2013 (2014/2)

FY2014 (2015/2)

FY2015 (2016/2)

FY2013 (2014/2)

FY2014 (2015/2)

FY2015 (2016/2)

Annual dividends per share (Yen)

30

32

40

Total amount of treasury stock
purchased (Millions of yen)

－

2,080

2,600

25.8

82.2

85.8

116.40133.90163.22

Total payout ratio (%)
Net income per share (Yen)15

Ⅰ. Overview and Summary of the Fiscal 2015, the Fiscal Year Ended
February 29, 2016
Ⅱ. Results Forecasts for Fiscal 2016 as well as Priority Issues and Measures
Ⅲ. Progress under the 4th Medium-Term Management Plan

16

Consolidated Subsidiary: Transfer of MISUZU Co., Ltd. Shares

Proposal to transfer all of the shares of MISUZU Co., Ltd.,
which is engaged in the apparel SPA business, approved at a
Board of Directors’ meeting
MISUZU Co., Ltd. Fiscal 2015 Results
Net sales: ¥4,870 million (-9.1% YoY) Operating loss: ¥86 million

Overview of the Share Transfer
Transferee:
No. of shares transferred:
Scheduled date of transfer:

Kenkou Corporation
All of the company’s issued andoutstanding shares
End of April 2016(※ The impact of the transfer of the consolidated subsidiary on the Group’s results has
been factored into forecasts for fiscal year ending February 28, 2017.)
17

Business Results Forecasts for Fiscal 2016
Decrease in revenues and increase in earnings; plans to record historic highsin each of operating income, ordinary income, and net income

Net sales: ¥51,500 million (－2.6% YoY) Operating income: ¥6,550 million (+7.1% YoY)
Ordinary income: ¥7,700 million (+12.3% YoY) Net income: ¥4,950 million (+15.7% YoY)
+7.1%

－2.6%
52,88351,500Net sales
FY2015FY2016 Plan
Actual Results

6,113

6,550

7,700

6,854

Operating income

Ordinary income

FY2015
Actual Results

FY2015FY2016 Plan
Actual Results

FY2016 Plan

FY2015 (2016/2)(Millions of yen, %)Results+15.7%+12.3%

4,277

Net income
FY2015
Actual Results

Plan

FY2016 PlanYoY

FY2016 (2017/2)

(%)

4,950

Increase (Decrease)
(%)

(%)

Net sales

52,883100.0

51,500

100.0

－2.6

Gross profit

30,831

58.3

30,107

58.5

－2.4

58.5

+0.2ptGross profit margin58.3

Selling, general andadministrative expenses

24,71746.7

23,55745.7－4.7

Operating income

6,113

11.5

6,550

12.7

+7.1

Ordinary income

6,854

13.0

7,700

14.7

+12.3

Net income

4,277

8.1

4,950

9.6

+15.7

18

Full Fiscal Year Business Results Forecasts by Segment(Figures are before accounting for intrasegment net sales and transfers)
 The Jewelry Business is projected to generate continued growth inrevenues and earnings (Existing store sales forecast to climb 3.0% YoY) Despite a downturn in revenues in the Apparel Business, profits are
expected to improve substantially owing to the transfer of MISUZU Co., Ltd.
shares and efforts to rebuild existing businesses
FY2015(2016/2)(Millions of yen, %)FY2016 (2017/2)

Results

The Jewelry
Business

The ApparelBusiness

Forecast

YoY

Net sales

31,73133,900+6.8

Operating income

5,863

6,160

+5.1

Ordinary income

6,017

6,286

+4.5

Net income

3,883

3,968

+2.2

Net sales

23,804

19,701－17.2

Operating income

200

459

+130.1

Ordinary income

474

681

+43.7

Net income

228

434

+90.6

(Note: Figures are before accounting for intrasegment net sales and transfers)

19Plans for Store Openings and Closures Plans to open 17 stores including composite stores in the Jewelry Business Plans to open 5 stores in the Apparel Business
Jewelry BusinessApparel BusinessJapan

FY2015
ActualResults(2016/2)

FY2016
Forecast(2017/2)

BridalShop

Fashion
Building

Overseas

MISUZU
Co., Ltd.

Total*

ageCo., Ltd.

Roadsidebutique

Department
store

Fiscalyearend

6

89

37

76

208

6

67

76

340

Stores
opene
d

0

5

2

9

16

2

ー

5

23

Storesclosed

1

1

0

2

4

0

ー

0

4

Fiscalyearend

5

93

39

83

220

8

ー

81

292

Total

(Note: Data after adjust for age Co., Ltd. sales agent stores)

20

Plans for the Number of Domestic Brand Storesin the Jewelry Business Stores handling jewelry: Increase in the number of brand stores on the back of newstore openings and renovations
 Stores handling bags: Continued opening of Luria 4ºC stores
4ºC

4ºC

FY2015
ActualResults(2016/2)

FY2016
Forecast(2017/2)

BRIDAL

canal 4ºC

Other*

Jewelry
Total

4ºC bags

Luria 4ºC

Bag Total

Fiscalyear-end

93

48

45

26

212

49

19

68

Storesopened

3

3

3

4

13

6

10

16

Storesclosed

3

0

0

0

3

2

1

3

Fiscalyear-end

93

51

48

30

222

53

28

81

※1.その他： EAU DOUCE4℃、RUGIADA、MAISON JEWELL、deux et deux※2.同一店舗にて複数のブランドを扱う複合店は各ブランドごとに１店舗として計上

21

Fiscal 2016 Priority Measures― Jewelry Business: Store Opening Strategy
 Continue to expand canal 4ºC and 4ºC BRIDAL stores, where results remainrobust Open new Luria 4ºC stores at an accelerated pace

(4ºC BRIDAL Machida Tokyu Twins Store)(canal 4ºC MOZO Wonder City Store)(Luria 4ºC Yokohama Lumine Store)

22

Fiscal 2016 Priority Measures― Jewelry Business: Product Mix
 Expand sales areas by rolling out composite stores (plans to open 4 new storesand roll out 4 composite stores after completing renovations) Open composite brand stores as well as adjacent brand stores(canal4ºC and Luria 4ºC composite store: KUZUHA MALL store)(Large Kyoto BAL composite store)(Adjacent canal 4ºC and Luria 4ºC stores: LaLaport Tachikawa Tachihi stores) 23

Fiscal 2016 Priority Measures― Jewelry Business: EC Business Expansion
 Continue to promote double-digit percentage growth; the EC market expected tooffer ongoing growth potential
 Plans to set up a designated bridal EC site in the summer(JEWELRY BOUTIQUE, an online 4ºC store)

24

Fiscal 2016 Priority Measures― Jewelry Business: China Market Development Plans to open 2 new stores in fiscal 2016
(Plans to expand the network to a total of 10 stores by opening 4 new stores
during the period of the 4th Medium-Term Management Plan) Develop products that are specific to the China market(Archive product for the China market)(4ºC Shanghai Jiu-Guang Store)

25

Fiscal 2016 Priority Measures― Jewelry Business: Brand Development
 Cultivate suburban-type SC channels in the MAISON JEWELL business Focus on developing brands as businesses that will spearhead the Group’s next
growth strategy(MAISON JEWELL Koshigaya LakeTown Store)

26

Fiscal 2016 Priority Measures― Jewelry Business: Pricing Strategy
 Continue to reinforce the integrity of product prices by not conducting clearance
sales in the Jewelry Business Plans to revise downward the prices of certain bridal products by 3-5% from May

27

Fiscal 2016 Priority Measures ― Apparel Business Put in place a production structure in a bid to secure new markets
 Actively cultivate new customers against the backdrop of uncertainty
surrounding apparel market trends
 Develop materials and put in place a production structure in order to address
the detailed required of customers

 Everyday fashion brand: Continue to open PALETTE stores thatreinforce the Group’s dominant position in the Kansai area
 Continue to entrench the Group’s dominant position in the Kansai area byrevitalizing existing PALETTE stores and opening new stores Plans to open 5 new stores annually28

Returning Profits to Shareholders
 Progressively increase the dividend payout ratio; work to improve thelevel of dividend payment by targeting a dividend payout ratio of 30%
over the medium term
Trends in Payout Ratio, etc.
FY2013 (2014/2)

FY2014 (2015/2)

FY2015 (2016/2)

FY2016 (2017/2)
Forecast

Annual dividends
per share (Yen)

30.0

32.0

40.0

50.0

Payout ratio (%)

25.8

23.9

24.5

26.5

Total payout
ratio (%)

25.8

82.2

85.8

ー

 In addition to the stable and continuous payment of dividends, flexibly

purchase treasury stock on an ongoing basis
 Cash after the return of profits to shareholders will be directed toward
investments aimed at driving internal growth as well as M&As
29

Ⅰ. Overview and Summary of the Fiscal 2015, the Fiscal Year Ended
February 29, 2016
Ⅱ. Results Forecasts for Fiscal 2016 as well as Priority Issues and Measures
Ⅲ. Progress under the 4th Medium-Term Management Plan

30

Progress under the 4th Medium-Term Management Plan
Steadfastly implemented priority measures; achieved results in excess of expectationsin the first fiscal year of the plan
Priority Strategies

Progress in the first fiscal year of the plan

Pursue an aggressive store opening strategy; plans toopen 70 new stores* over the three-year period

Opened 33 new stores as of the end of February
2016

Develop businesses that will play
an important role in the next setof growth strategies• Accelerating the pace at which new Luria 4ºC stores are
opened; opened 17 new stores• Substantial growth in EC business sales, up 40% YoY• Began verifying the feasibility of an EC-based bridal jewelrybusiness• Continued to accumulate know-how in a bid to cultivate theChina market; in gathering information, particular emphasis
was placed on identifying a product mix that would best meetthe market’s needs

Expand the scale of business bycontinuing to push forward theGroup’s five growth engine pillars• Continued strong performance by the 4ºC jewelry andcanal 4ºC brands• Robust results on the back of successful efforts to implement
initiatives including 4ºC BRIDAL fairs• Further entrenched the Group’s dominant position in the
Kansai area by promoting growth at existing stores andexpanding the number of new stores in the everyday fashion
brand PALETTE business31

Toward Stable and Sustainable Growth— Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel OEM, andretail businesses
OutputInputsSustainable
GrowthShareholders
Customers

Jewelry SPA
Employees

Shareholders
Customers
Employees

Manufacturers

Manufacturers
Partnercompanies

Apparel OEM

RetailPartnercompanies

SocietySociety

Management and business platforms
The environment, society, and governance (ESG)32

Activities Aimed at Addressing ESG Issues― Developing Human Resources Develop a tradition of value and occupational capabilities through the effective
use of a corporate university designed to promote sound business management
 Conduct specialized customer service training at the F.D.C. FRIENDSCOLLEGE training facility
 Strengthen initiatives aimed at promoting work-life balance and diversity by
establishing the Group Strategy Promotion Office33

Activities Aimed at Addressing ESG Issues― Quality Build a control structure that delivers unprecedented levels of quality assurance
at the Sagamihara Jewelry Center Increase investment in x-ray inspection equipment, build a 100-strong quality
inspection team, and undertake the inspection of all jewelry items
 Strengthen and invest in a robust control structure with the aim of maintaining
the value of the Group’s brands designed to ensure the safety and peace of mindof customers

34

In conclusion Due mainly to robust results in the Jewelry Business, the YONDOSHI HOLDINGSGroup reported a fifth consecutive accounting period of revenue growth and carrying
on from the previous fiscal historic high earnings in the fiscal year ended
February 29, 2016, the first year of the 4th Medium-Term Management Plan The YONDOSHI HOLDINGS Group is targeting yet another fiscal year of historichigh earnings in the fiscal year ending February 28, 2017, the second year of the
4th Medium-Term Management Plan, on the back of further growth in the Jewelry
Business and efforts to rebuild the Apparel Business(Historic highs in operating income and net income for a fifth consecutive
accounting period, and in ordinary income for a sixth consecutive accounting period) The YONDOSHI HOLDINGS Group is focusing on a variety of initiatives including
the opening of new Luria 4ºC stores, the opening of new stores in China,
the establishment of a designated EC bridal site, and the development of the
MAISON JEWELL brand as a part of efforts to cultivate businesses that will
Spearhead the Group’s next growth strategies
 The YONDOSHI HOLDINGS Group is looking to progressively lift its dividend
payout ratio to around 30% over the medium term in a bid to increase the level ofProfits returned to shareholders
 The YONDOSHI HOLDINGS Group will continue to nurture human resources,
bolster product capabilities, and assess market trends, with the aim of becoming
a century-old company and brand35

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.
Corporate Planning Division (Kozuka)
TEL+81-3-5719-3429
FAX+81-3-5719-3289
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.