CONSOLIDATED FINANCIAL REPORTFISCAL 2013（Japanese GAAP）(March 1, 2013 to February 28, 2014)
April 14, 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 and General Manager Operations Dept.
Tel: +81-3-5719-3429
URL: http://www.yondoshi.co.jp/
Annual General Meeting of Shareholders date (planned): May 22, 2014
Fiscal 2013 Securities Report filing date (planned): May 23, 2014
Dividend payment commencement date (planned): May 23, 2014
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 2013 (March 1, 2013 to February 28, 2014)(1) Consolidated Business Results(% figures represent year-on-year increase or decrease)
Operating Revenues

Operating Income%

Millions of yen

Ordinary Income%

Millions of yen

FY 201349,003

1.6

4,906

FY 2012

48,2373.3

4,289(Note) Comprehensive income: FY 2013: ¥3,522 million (14.6%)%

Millions of yen

Net Income%

Millions of yen

14.4

5,642

15.5

3,183

14.3

25.2

4,883

25.6

2,785

41.4

FY 2012: ¥3,072 million (59.5%)
Ordinary Income
to Total Assets

Ordinary Income
to Operating
Revenues%%%

FY 2013116.40116.24
7.5
FY 2012101.64—
7.0(Reference) Equity in earnings of affiliated companies accounted for by the equity method:
FY 2013: ¥497 million
FY 2012: ¥377 million

10.1
9.4

10.0
8.9

Net Income Per
Share

Net Income Per
Share (Diluted)

Yen

ROE

Yen

(2) Consolidated Financial Position
Total Assets

Net Assets to Total

Net Assets

Net Assets per Share ofCommon Stock

AssetsMillions of yen

Millions of yen%

Yen

As of February 28, 2014

58,47844,13675.4

1,609.45

As of February 28, 201353,295

41,10677.1

1,509.31(Reference) Shareholders’ equity: As of February 28, 2014: ¥44,116 million

As of February 28, 2013: ¥41,086 million(3) Consolidated Cash Flows

Millions of yen

Millions of yen

Millions of yen

Cash and Cash
Equivalents at the Endof the Period
Millions of yen

FY 2013

5,185

(989)

(823)

5,493

FY 2012

3,368(1,230)(1,322)

2,111

Operating Activities

Investing Activities― 1 ―Financing Activities

2.

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

Yen

End of 4Q

Annual

Yen

Yen

Yen

Cash

Dividend

Dividends

Payout Ratio

to Net Assets

Paid (Annual)(Consolidated)(Consolidated)

Millions of yen%

Cash Dividends%

FY 2012
—
10.50
—
11.50
22.00
626
21.6
FY 2013
—
12.50
—
17.50
30.00
855
25.8
FY 2014 (planned)
—
16.00
—
16.00
32.00
23.3
(Note) Breakdown of year-end dividend per share for fiscal 2013: Ordinary dividend: 12.50 yen; special dividend: 5.00 yen

3.

1.5
1.9

Forecast of Consolidated Results for FY 2014 (March 1, 2014 to February 28, 2015)(% 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

4.

Operating Income

Ordinary Income

Net Income per

Net Income

Share

Millions of yen%

Millions of yen%

Millions of yen%

Millions of yen%

Yen

23,50051,500

3.7
5.1

2,000
5,400

5.4
10.1

2,400
6,300

6.1
11.6

1,400
3,750

7.9
17.8

51.18
137.09Other(1) Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance withchanges in the scope of consolidation): No
New: —
Excluded: —(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: Yes
2) Changes of accounting principles other than 1) above: No
3) Changes in accounting estimates: Yes
4) 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, 2014: 29,331,356 shares
As of February 28, 2013: 29,331,356 shares
2. Number of treasury stock
As of February 28, 2014: 1,920,288 shares
As of February 28, 2013: 2,109,450 shares
3. Average number of shares for the year
FY2013: 27,353,992 shares
FY2012: 27,404,760 shares
Notes:
1. The number of recorded treasury stock is inclusive of 156,300 of the Company’s shares held by the YONDOSHIHOLDINGS Group Employees’ Shareholding Association Trust Account as of the end of the fiscal year.
2. For additional information on the basic number of shares used to calculate consolidated net income per share,please refer to “Per Share Information” on page 22.

(Reference) Non-Consolidated Performance
1. Non-Consolidated Performance for FY 2013 (March 1, 2013 to February 28, 2014)(1) Non-Consolidated Business Results(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year)
Operating Revenues
Millions of yen%

Operating Income
Millions of yen

Ordinary Income%

Millions of yen%

Net Income
Millions of yen%

FY 2013

1,651

8.4

1,088

11.4

1,071

12.6

906

13.0

FY 2012

1,524

16.6

977

18.7

951

19.6

802

19.0

Yen

Net Income Per Share(Diluted)Yen

FY 2013

31.83

31.79

FY 201228.12—

Net Income per Share― 2 ―(2) Non-Consolidated Financial Position
Total Assets

Net Assets

Net Assets to Total
AssetsNet Assets per Share ofCommon StockMillions of yen

Millions of yen%

Yen

As of February 28, 2014

36,79024,39266.2

854.29As of February 28, 2013

33,56023,97971.4

845.42(Reference) Shareholders’ equity: As of February 28, 2014: ¥24,373 million

As of February 28, 2013: ¥23,960 million

Regarding the Status of Review Procedure Implementation
This financial report for the fiscal 2013 is not subject to the review procedures stipulated in the Financial
Instruments and Exchange Act of Japan. As of the date of disclosure of this report, the review procedures forthe financial statements under the Financial Instruments and Exchange 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 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 well as
cautionary notes on the use of operating results forecasts, please refer to the information from page 6.

― 3 ―Contents
1.

OPERATING RESULTS

5(1)

Analysis of Operating Results

5(2)

Analysis of Financial Position

7(3)

Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2013 and Fiscal 2014

8

2.

MANAGEMENT POLICIES

9

3.

CONSOLIDATED FINANCIAL STATEMENTS

10

(1)

Consolidated Balance Sheets

10

(2)

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

12

Consolidated Statements of Income

12

Consolidated Statements of Comprehensive Income

13

(3)

Consolidated Statements of Changes in Net Assets

14

(4)

Consolidated Statements of Cash Flows

16

(5)

Notes to Consolidated Financial Statements

18(Notes Regarding Going Concern Assumptions)18(Changes in Accounting Policies)

18(Segment Information)

18(Per Share Information)

22(Important Subsequent Events)

22

4.

NON-CONSOLIDATED FINANCIAL STATEMENTS

23

(1)

Non-Consolidated Balance Sheets

23

(2)

Non-Consolidated Statements of Income

25

(3)

Non-Consolidated Statements of Changes in Net Assets

26

― 4 ―

1. Analysis of Operating Results and Financial Position(1) Analysis of Operating Results
In fiscal 2013, the fiscal year ended February 28, 2014, the Japanese economy witnessed a mild upswing.
Despite elements of uncertainty owing to such factors as a weak European community and sluggish growth indeveloping countries, this modest recovery trend was largely attributable to improvements in corporate
earnings amid corrections to the strong yen and rising stock prices on the back of favorable reactions to thegovernment’s economic measures and financial policies.
In the retail industry, sales of high-priced items were positive as a result of the wealth effect and otherfactors. Activity was also buoyed by the rush in demand ahead of the consumption tax rate hike in April.
Despite these favorable conditions, personal consumption fell short of a full-fledged recovery owing mainly tothe residual effects of a harsh operating environment.
Under these circumstances, for fiscal 2013, the second year of its third medium-term management plan, the
YONDOSHI HOLDINGS Group took steps to enhance its corporate value, including practicing CSR-based
management to become a highly trusted corporate group, strengthening internal controls, providing returns toshareholders, and making longer term investments linked to earnings growth.
On an individual operating company basis, F.D.C. Products Inc. continued to push forward measures aimed
at increasing the value of its 4°C jewelry brand. At the same time, the company took steps to systematically
expand its network of 4°C BRIDAL and canal 4°C stores.
AS’TY Inc. worked diligently to bolster its project planning-type ODM business based on a market
strategy that firmly reflects the company’s aggressive stance toward generating high earnings.
MISUZU Co., Ltd. endeavored to increase customer numbers, enhance the value of its brand, andstrengthen its organizational operating skills as a part of efforts to establish an apparel SPA business.
age Co., Ltd. strove to further expand its mainstay everyday fashion brand PALETTE business by opening
new stores in the Kansai area, where age boasts a dominant position.
As a result, operating revenues amounted to ¥49,003 million (up 1.6% year on year), with operating
income of ¥4,906 million (up 14.4%), ordinary income of ¥5,642 million (up 15.5%), and net income of¥3,183 million (up 14.3%) in fiscal 2013 on a consolidated business results basis.
Operating income and net income reached record highs for the second consecutive year. The YONDOSHIHOLDINGS Group also reported its highest ordinary income for a third successive year.
Results by Business Segment for the Fiscal Year Ended February 28, 2014
The F.D.C. Products GroupOperating Revenues¥
26,277 million (Up 6.5% YoY)
Operating Income¥
4,374 million (Up 16.5% YoY)
The F.D.C. Products group posted an increase in operating revenues and a considerable rise in operating
income compared with the previous fiscal year. This was mainly due to the positive performance at existing
stores of its mainstay 4°C brand jewelry along with an aggressive expansion program for 4°C BRIDAL andcanal 4°C stores.
The AS’TY GroupOperating Revenues¥
9,107 million (Down 8.4% YoY)
Operating Income¥
557 million (Up 2.8% YoY)
The AS’TY group worked diligently to increase sales by strengthening its project planning capabilities in theapparel manufacturing business. Buffeted by such factors as the weak yen, however, operating revenues
declined year on year. In contrast, operating income increased compared with the previous fiscal year. This
was largely attributable to the recovery in subsidiary company profits.

― 5 ―MISUZU
Operating Revenues¥
5,881 million (Down 4.2% YoY)
Operating Loss¥
69 million (—)
MISUZU Co., Ltd. conducted sales promotion campaigns while bolstering its product planning capabilities.
Despite these endeavors, operating revenues decline owing to inclement weather conditions, the sluggish
performance at new stores, and other factors. For the period under review, MISUZU Co., Ltd. incurred an
operating loss.
age
Operating Revenues¥
7,737 million (Up 3.5% YoY)
Operating Income¥
160 million (Up 6.2% YoY)
age Co., Ltd. posted increases in both operating revenues and operating income compared with the previous
fiscal year. This mainly reflected the strong performance at existing mainstay everyday fashion brand
PALETTE stores and successful efforts to open new stores.
Outlook
Looking ahead, operating conditions throughout the Japanese economy remain shrouded in uncertainty.
Despite a projected increase in capital investment on the back of higher corporate earnings and expectations ofa mild recovery thanks mainly to improvements in disposable incomes, this uncertainty reflects concerns
surrounding sluggish growth in developing countries, the impact of an increase in Japan’s consumption tax rate,
and other factors.
There are fears that the retail sector will continue to feel the effects of lingering harsh operating conditions.
These concerns are also attributable to such factors as the anticipated correction in purchasing behavior
following the surge in demand ahead of the consumption tax rate hike in April.
Against this backdrop, the YONDOSHI HOLDINGS Group will remain committed to becoming a highly
reliable and trustworthy corporate group, practicing CSR management and bolstering the internal control
function throughout the final year of its third medium-term management plan. At the same time, the Group will
work to foster relationships built on trust with its shareholders through its IR activities and undertake thenecessary medium- to long-term investment that will lead to earnings growth. Through these and other means,
the YONDOSHI HOLDINGS Group will work diligently toward enhancing its corporate value.
Moving forward, the Group will continue to strengthen and expand its six core 4°C brand jewelry, 4°C
BRIDAL, canal 4°C, apparel manufacturing, apparel SPA, and daily fashion business growth engines. These
endeavors will dovetail into efforts to achieve its “Numerical Vision.”
Moreover, the YONDOSHI HOLDINGS Group will reinforce its administration and oversight systems,
further develop the Group Strategy Promotion Project, strive for optimal operations, and pursue effective
organizational management in order to promote a Group synergy framework.
By business group, the F.D.C. Products group will continue to push forward measures aimed at increasing
the value of its 4°C jewelry brand. At the same time, the company will take ongoing steps to systematically
expand its network of 4°C BRIDAL and canal 4°C stores. Moving forward, the F.D.C. Products group will
pursue the opening of new deux et deux bridal ring specialty stores in a bid to further cultivate the bridal
market.
The AS’TY group will adopt a China Plus Others strategy as a part of efforts to establish a robust
production platform and expand its ODM apparel manufacturing business.
MISUZU Co., Ltd. will strengthen its designer proposal capabilities focusing mainly on core brands. At
the same time, the company will work diligently to secure profitable operations by reinvigorating existing― 6 ―stores and rationalizing unprofitable stores.
Building on its dominant position in the Kansai area, age Co., Ltd. will endeavor to expand the market for
its everyday fashion PALETTE brand. The company will also establish a new Kansai logistics base, shorten
the time required for delivery, and reduce overhead expenses.
Based on each of these initiatives, the YONDOSHI HOLDINGS Group is committed to becoming arobust corporate group that has a unique and distinct identity.
Accounting for the aforementioned factors, the YONDOSHI HOLDINGS Group is projecting operating
revenues of ¥51,500 million, ordinary income of ¥6,300 million, and net income of ¥3,750 million on aconsolidated basis for fiscal 2014, the fiscal year ending February 28, 2015.
(2) Analysis of Financial Position
The Status of Assets, Liabilities, and Net Assets
With regard to the YONDOSHI HOLDINGS Group’s consolidated financial position as of the end of the fiscal
year under review, total assets stood at ¥58,478 million, ¥5,183 million higher than the balance as of the end of
the previous fiscal year. This was mainly attributable to increases in marketable securities of ¥3,260 million,
merchandise and finished goods of ¥976 million, and investment securities of ¥820 million.
Total liabilities amounted to ¥14,342 million as of February 28, 2014. This represented an increase of¥2,153 million compared with the end of the previous fiscal year. The principal movements in liabilities wereincreases in notes and accounts payable — trade of ¥705 million, deferred tax liabilities of ¥560 million, andincome taxes payable of ¥511 million.
Net assets as of the fiscal year-end stood at ¥44,136 million, an increase of ¥3,029 million compared withthe balance as of February 28, 2013. This was largely due to the increase in retained earnings of ¥2,472
million.
Cash Flows
On a consolidated basis cash and cash equivalents as of the end of the period under review (February 28, 2014)
stood at ¥5,493 million, an increase of ¥3,381 million compared with the end of the previous fiscal year.
(Cash Flows from Operating Activities)
Net cash provided by operating activities amounted to ¥5,185 million. This was an increase of ¥1,817 million
compared with the previous fiscal year. The major cash inflow for the period was net income before income
taxes of ¥5,435 million.
(Cash Flows from Investing Activities)
Net cash used in investing activities was ¥989 million, down ¥241 million compared with the previous fiscal
year. The major cash outflow was payments for the acquisition of property, plant and equipment totaling¥1,048 million.
(Cash Flows from Financing Activities)
Net cash used in financing activities was ¥823 million, down ¥498 million compared with the previous fiscal
year. The major cash outflow was cash dividends paid of ¥687 million.

― 7 ―(Reference) Trends in the YONDOSHI HOLDINGS Group’s cash flow indicators are provided in thefollowing table.
Fiscal 2010
Shareholders’ equity ratio (%)
Shareholders’ equity ratio based onmarket capitalization (%)
Cash flow to interest-bearing debt
ratio (Year)
Interest coverage ratio (Times)

Fiscal 2011

Fiscal 2012

Fiscal 2013

73.6

75.9

77.1

75.4

41.3

41.9

51.3

73.8

0.9

0.2

0.3

0.2

71.9

143.9

231.1

1,851.9

Notes:
Shareholders’ equity ratio: Shareholders’ equity / Total assets
Shareholders’ equity ratio based on market capitalization: Market capitalization / Total assets
Cash flow to interest-bearing debt ratio: Interest-bearing debt / Cash flow from operating activities
Interest coverage ratio: Cash flow from operating activities / Interest payments
 Each indicator is calculated based on figures from consolidated financial statements.
 Market capitalization is calculated based on the number of shares issued and outstanding at the end of the period after
deducting treasury stock.
 Interest-bearing debt includes all interest-bearing debt recorded under liabilities in the consolidated balance sheets.
 Cash flow from operating activities is taken from net cash provided by (used in) operating activities in the consolidated
statements of cash flows. Interest payments are taken from cash paid for interest in the consolidated statements of cash
flows.

(3) Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2013and Fiscal 2014
The YONDOSHI HOLDINGS Group places the appropriation of profits to shareholders as a key management
priority. As a result, the Group strives to deliver stable and sustainable cash dividends. At the same time, theGroup adopts a flexible policy toward the purchase of treasury stock as a part of comprehensive efforts toincrease the level of returns to shareholders.
Based on the aforementioned policy, taking into consideration the record historic highs in operating
income and ordinary income as well as net income in fiscal 2013, YONDOSHI HOLDINGS plans to add anextraordinary cash dividend of ¥5 per common share to its fiscal year-end cash dividend of ¥12.5 per commonshare for a total of ¥17.5 per common share. Together with the interim cash dividend paid of ¥12.5 per share,
the Company intends to pay a full fiscal year cash dividend for fiscal 2013 of ¥30.0 per common share.
Looking ahead, YONDOSHI HOLDINGS plans to pay an interim and fiscal year-end cash dividend of ¥16.0
per common share for the fiscal year ending February 28, 2015 for a full fiscal year cash dividend of ¥32.0 per
common share.
In addition to the appropriation of profits through cash dividends, YONDOSHI HOLDINGS has
established a shareholder special benefit plan. Shareholders of record as of the end of the period can choose
from three benefit options including shareholder gift certificates, Group products and a donation to the Japan
Water Forum, which is introduced as a CSR-oriented benefit.
Furthermore, in an effort to better prepare the Group for the road ahead and to pursue businessdevelopment, YONDOSHI HOLDINGS will continue to enhance profitability and reinforce the Group’s
management and business platforms while fulfilling the expectations of shareholders going forward. At thesame time, the Group will take into consideration the internal working capital required to reinforce its
management structure in response to an increasingly competitive environment, cultivate new markets, develop
new brands and pursue business development through a variety of vehicles including M&A.

― 8 ―

2. MANAGEMENT POLICIESThere have been no major changes to information disclosed in the YONDOSHI HOLDINGS Group’s Fiscal
2011 Consolidated Financial Report dated April 9, 2012. Accordingly, details have been omitted.
Copies of the Group’s Fiscal 2011 Consolidated Financial Report can be accessed via the following
websites.
(YONDOSHI HOLDINGS INC.’s homepage)
URL: http://www.fa-aqua.co.jp/(The homepage of the Tokyo Stock Exchange (Information Search Page for Publicly Listed Companies))
URL: http://www.tse.or.jo/listing/compsearch/index.html― 9 ―3. CONSOLIDATED FINANCIAL STATEMENTS(1) Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2013

February 28, 2014

(As of February 28, 2013)(As of February 28, 2014)ASSETS
Current assets:
Cash and deposits
Notes and accounts receivable ― trade521,769

643,415

3,149,732

2,952,219

Short-term investment securities

1,590,000

4,850,000

Merchandise and finished goods

5,842,888

6,819,273

Work in process

447,256

728,965

Raw materials and supplies

464,404

678,745

Deferred tax assets

501,546

618,437

Advance payments-trade

14,746

6,025

Accounts receivable-other54,16373,666

Other

409,069

251,918

Allowance for doubtful accounts
Total current assets(216)(4,233)

12,995,001

17,618,434

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

5,389,917

5,485,560

Land

5,617,629

5,549,208

201,102

187,635

Lease assets, net
Construction in progress－

34,600477,342

537,300

11,685,992

11,794,305

Goodwill

6,276,954

6,206,310

Lease assets

531,875

582,497

Other, net
Total property, plant and equipment
Intangible assets:

Right of trademark

973

763

91,15677,5547,350,959

6,867,126

Investment securities

14,803,392

15,623,836

Guarantee deposits

346,948344,312Long-term loans receivable

28,282

22,576

Deferred tax assets

389,689

406,543

Other
Total intangible assets
Investments and other assets:

Real estate for investment, net

798,325

750,917

Prepaid pension cost

1,998,224

2,077,497

Lease deposits
Claims provable in bankruptcy, claims provable inrehabilitation and otherOther

2,447,917

2,523,068

551,715550,568

483,112480,131

Allowance for doubtful accounts(584,093)(580,756)

Total investments and other assets

21,263,515

22,198,696

Total noncurrent assets
Total assets― 10 ―

40,300,467

40,860,128

53,295,468

58,478,562

(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2013

February 28, 2014

(As of February 28, 2013)(As of February 28, 2014)

LIABILITIESCurrent liabilities:
Notes and accounts payable ― trade

3,810,018

4,515,638

Lease obligations

186,838

241,069

Income taxes payable

855,113

1,366,588

Provision for bonuses

553,077425,726

Provision for directors’ bonuses

59,45044,250Asset retirement obligations

7,988

－

Other

2,700,448

3,267,051

Total current liabilities

8,172,934

9,860,324

Noncurrent liabilities:
Long-term loans payable

243,160

150,930

Lease obligations

581,598

596,616Long-term guarantee deposited

313,146

295,476

Deferred tax liabilities

959,729

1,520,356

Provision for retirement benefits

540,621537,167

Provision for directors’ retirement benefits

380,602339,728

Asset retirement obligations

845,241

942,180

Other

151,793

99,493

Total noncurrent liabilities
Total liabilities

4,015,894

4,481,950

12,188,829

14,342,274

NET ASSETS
Shareholders’ equity:
Capital stock

2,486,520

2,486,520

Capital surplus

18,300,303

18,322,104

Retained earnings

21,891,593

24,364,402

Treasury stock(1,670,933)(1,504,089)

Total shareholders’ equity

41,007,484

43,668,937

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities

352,470648,981Deferred gains or losses on hedges

16,070(10,415)

Revaluation reserve for land

(264,512)(233,476)

Foreign currency translation adjustments(25,239)

42,838

Total accumulated other comprehensive income

78,789447,928

Subscription rights to shares

19,195

19,421

Minority interests

1,171

－

41,106,639

44,136,288

53,295,468

58,478,562

Total net assets
Total liabilities and net assets― 11 ―

(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income(Thousands of yen)
Fiscal 2012

Fiscal 2013

(March 1, 2012 to(March 1, 2013 to

February 28, 2013)

February 28, 2014)

Net sales

47,264,994

48,140,315

Cost of Sales

21,274,491

21,261,457

Gross profit

25,990,502

26,878,858

972,029862,868

Other operating revenue
Operating gross profit

26,962,531

27,741,727

Selling, general and administrative expenses

22,673,381

22,835,642

Operating income

4,289,150

4,906,084

Non-operating income
Interest income

2,646

9,272

Dividends received
Equity in earnings of affiliates

66,094

72,143

377,195

497,201

Rent of real estate for investment

88,23099,237

Foreign exchange gains

32,86323,178

Subsidy income

19,460－Other49,58051,596

Total non-operating income

636,070752,630

Interest expenses

15,083

2,826

Loss on insurance cancellation

5,129

1,925

Depreciation on investments in real estate

6,255

6,101

Non-operating expenses

Management cost on real estate for investment

2,046

2,063

Other

13,151

2,940

Total non-operating expenses

41,66615,857

4,883,554

5,642,858

77,915－

21,974Gain on sales of golf memberships

－

1,428

Gain on sales of investment securities

224－

14,000－Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of real estate for investment

Foregift income

12,163

Other

5,140

－

Total extraordinary income

97,30035,566Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Impairment loss

257

－

5,609

－

184,088239,675

Loss on closing of stores

9,935

3,513

Dismantlement expense
Loss on valuation of golf club memberships
Loss on withdrawal from employees' pension fund18,000－20,504－

Other

183,983

－

2,800

－

Total extraordinary losses

425,179

243,188

Net income before income taxes

4,555,675

5,435,236

Income taxes ― current

1,501,476

1,957,454

Income taxes ― deferred

269,369

293,808

Total income taxes

1,770,846

2,251,262

Income before minority interests

2,784,829

3,183,973

Minority interests in income (loss)
Net income― 12 ―(625)(0)

2,785,454

3,183,974

Consolidated Statements of Comprehensive Income(Thousands of yen)
Fiscal 2012

Fiscal 2013

(March 1, 2012 to(March 1, 2013 to

February 28, 2013)

February 28, 2014)

Income before minority interests

2,784,829

3,183,973

Other comprehensive income
Other valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustments
Share of other comprehensive income of associates accounted
for using equity method
Total other comprehensive income
Comprehensive income

245,802

256,297

1,445(25,323)

24,93368,077

15,47339,052

287,655
3,072,485

338,1033,522,077

3,071,859

3,522,077

625

(0)

Comprehensive income attributable toComprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests― 13 ―

(3) Consolidated Statements of Changes in Net Assets
Fiscal 2012 (March 1, 2012 to February 28, 2013)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

Shareholders’ equity
Treasury stock
Treasurystock
Retained(held byTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,300,303

19,720,307(1,177,700)(298,714)

Total
treasury
stock

Total
shareholders’equity(1,476,415)

39,030,717

Changes of items during the period
Dividends from surplus(614,169)(614,169)

Net income

2,785,454

2,785,454

Purchase of treasury stock
Disposal of treasury stock
Sales of treasury stock from Employee
Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period(285,799)(285,799)(285,799)

(11)

(11)

(11)

91,292

91,292

91,292——

2,171,285(285,811)

91,292(194,518)

1,976,766

2,486,520

18,300,303

21,891,593(1,463,511)(207,422)(1,670,933)

41,007,484(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailable-for-sale
securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive
income91,193

14,624(264,512)(50,172)(208,866)

Subscription
rights tosharesMinority
interests

Total net
assets

14,286

1,796

38,837,933(614,169)
2,785,454(285,799)(11)

91,292

261,276

1,445—

24,933

287,655

4,908

(625)

291,939

261,276

1,445—

24,933

287,655

4,908

(625)

2,268,705

352,470

16,070(264,512)(25,239)78,78919,195

1,171

41,106,639― 14 ―

Fiscal 2013 (March 1, 2013 to February 28, 2014)(Thousands of yen unless otherwise stated)

Balance at the end of previous period

Shareholders’ equity
Treasury stock
Treasurystock
Retained(held byTreasury
Employeeearnings
stock
Stock
Ownership
Trust)

Commonstock

Capitalsurplus2,486,520

18,300,303

21,891,593(1,463,511)(207,422)

Total
treasury
stock

Total
shareholders’equity(1,670,933)

41,007,484

Changes of items during the period
Dividends from surplus(682,132)(682,132)

Net income
Increase in retained earnings resulting
from change of consolidated
subsidiaries
Purchase of treasury stock

3,183,974

3,183,974

2,002

2,002

Disposal of treasury stockReversal of revaluation reserve for
land
Sales of treasury stock from Employee
Stock Ownership Trust
Net changes in items excluding
shareholders’ equity during the period
Total
Balance at the end of current period

21,800

(554)

(554)

(554)

108,148

108,148

129,949(31,036)(31,036)
59,25059,25059,250—21,8002,472,808

107,594

59,250166,8442,661,453

2,486,520

18,322,104

24,364,402(1,355,917)(148,172)(1,504,089)

43,668,937(Thousands of yen unless otherwise stated)
Accumulated other comprehensive income

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Increase in retained
earnings resulting
from change ofconsolidated
subsidiaries
Purchase of treasury
stock
Disposal of treasury
stock
Reversal ofrevaluation reserve
for land
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Valuationdifferenceonavailable-for-sale
securities

Deferred
gains orlosses onhedges

Revaluation
reserve forland

Foreigncurrencytranslation
adjustments

Total
accumulated
othercomprehensive
income352,470

16,070(264,512)(25,239)78,789Subscription
rights tosharesMinority
interests

Total net
assets19,195

1,171

41,106,639(682,132)
3,183,974

2,002

(554)
129,949
31,03631,036—59,250296,511(26,485)—

68,077338,103226(1,171)

337,158

296,511(26,485)

31,036

68,077369,139226(1,171)

3,029,648

648,981(10,415)(233,476)

42,838447,928

19,421—

44,136,288― 15 ―

(4) Consolidated Statements of Cash Flows(Thousands of yen)
Fiscal 2012

Fiscal 2013

(March 1, 2012 to(March 1, 2013 to

February 28, 2013)

February 28, 2014)

Cash Flows from Operating Activities:
Net Income before income taxes

4,555,675

5,435,236

Depreciation and amortization

903,110

1,026,676

Impairment loss

184,088239,675

Amortization of goodwill

544,782

520,643

Increase (decrease) in allowance for doubtful accounts(15,861)

679

Increase (decrease) in provision for bonuses

52,137(127,350)

Increase (decrease) in provision for retirement benefits(12,617)(83,629)

Increase (decrease) in other provision(8,564)(56,074)

Interest and dividends income(68,741)(81,416)

Interest expenses

15,0832,826

Equity in (earnings) losses of affiliates(377,195)(497,201)

Foreign exchange losses (gains)

28,475(4,355)

Loss on retirement of noncurrent assets

5,609

―

Loss (gain) on sales of noncurrent assets(77,657)(12,163)

Loss (gain) on sales of real estate for investment―(21,974)(244)―

Gain on sales of subsidiaries and affiliates' stocks(5,140)―Loss on valuation of golf club membership

20,504―

Loss (gain) on sales of investment securities

Decrease (increase) in notes and accounts receivable ― trade197,447

201,159

Decrease (increase) in inventories(654,246)(1,457,010)

Increase (decrease) in notes and accounts payable ― trade(172,011)

705,260

Increase (decrease) in accrued consumption taxes(134,701)

52,295

Increase (decrease) in advances received

279,572

500,753

Decrease (increase) in other assets(124,362)

150,267

Increase (decrease) in other liabilities(236,605)(58,569)

Subtotal

4,898,536

6,435,728

177,505

190,181Interest and dividends income received
Interest expenses paid

(14,572)(2,799)

Income taxes paid

(1,693,379)(1,437,902)

Net cash provided by (used in) operating activities

3,368,090

5,185,207― 16 ―

(Thousands of yen)
Fiscal 2012

Fiscal 2013

(March 1, 2012 to(March 1, 2013 to

February 28, 2013)

February 28, 2014)

Cash Flows from Investing Activities:
Purchase of property, plant and equipment(1,012,920)(1,048,529)

Proceeds from sales of property, plant and equipment

579,184

128,560

Purchase of intangible assets(12,111)(19,089)

Proceeds from sales of intangible assets

135―(703,972)(17,077)

Proceeds from sales of investment securities

952―

Proceeds from sales of real estate for investment―

63,361

Payments of long-term loans receivable(5,329)(9,753)

Collection of long-term loans receivable

12,381

15,459Purchase of long-term prepaid expenses(45,858)(70,773)

Other payments

Purchase of investment securities(364,905)(388,201)

Proceeds from sales of investments in subsidiaries resulting inchange in scope of consolidation

57,075―

Other proceeds

264,805

356,743(1,230,564)(989,299)

Repayment of long-term loans payable(364,890)(92,230)

Purchase of treasury stock(285,799)

(554)

―

114,975

Cash dividends paid

(620,361)(687,001)

Other payments(51,440)(159,113)(1,322,490)(823,924)

9,412

9,662

Net increase (decrease) in cash and cash equivalents

824,447

3,381,646

Cash and cash equivalents at beginning of period

1,287,321

2,111,769

Cash and cash equivalents at beginning of period

2,111,769

5,493,415

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

Proceeds from sales of treasury stock

Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents― 17 ―

(5) Notes to Consolidated Financial Statements(Notes Regarding Going-Concern Assumption)
Not applicable.
(Changes in Accounting Policies)(Changes in Accounting Policies Difficult to Distinguish from Changes in Accounting Estimates)(Changes in Depreciation Methods)
In accordance with revisions to the Corporation Tax Act of Japan, YONDOSHI HOLDINGS and its
domestic consolidated subsidiaries have changed their accounting policies for property andequipment acquired on or after March 1, 2013 to the depreciation method based on the revised
Corporation Tax Act effective from fiscal 2013.
The impact of this change on profit and loss for fiscal 2013 is minimal.

(Segment Information)
1. Overview of Reporting Segments
The Group’s reporting segments are regularly reviewed by the Board of Directors using thesegregated financial information available within each segment to determine the allocation ofmanagement resources and evaluate business results.
As a comprehensive fashion company, the YONDOSHI HOLDINGS Group engages inbusiness activities through four core operating companies. These are F.D.C. Products Inc., AS’TY
Inc., MISUZU Co., Ltd. and age Co., Ltd.
The individual business segments of the YONDOSHI HOLDINGS Group are fundamentallycomprised of its consolidated subsidiaries. On this basis, the Company’s four reporting segments are the
F.D.C. Products group, the AS’TY group, MISUZU and age.
The F.D.C. Products group is mainly engaged in brand SPA activities dealing ostensibly with 4°C
jewelry as well as restaurant business operations.
The AS’TY group undertakes apparel manufacturing business focusing primarily on its ODM
activities while at the same time engaging in apparel wholesale and developer business activities.
MISUZU operates largely in the ladies’ apparel SPA business.
age is active in retail operations primarily in the fashion sector focusing mainly on Western Japan.

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.

― 18 ―

3. Information Regarding Net Sales, Profit and Loss, Assets, Liabilities and Other Items by Reporting
Segment
Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)(Thousands of yen)
Reporting Segments

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
statement ofincomeF.D.C.
Products
group

AS’TY
group

MISUZUage

Total

24,678,083

9,940,241

6,141,633

7,477,064

48,237,023―

48,237,023

42,8701,424,225

68,647

190,903

1,726,647(1,726,647)

―

Total

24,720,954

11,364,467

6,210,280

7,667,968

49,963,670(1,726,647)

48,237,023

Segment income

3,756,278

542,671

75,435

151,183

4,525,568(236,418)

4,289,150

Segment assets

20,937,884

18,191,716

2,885,237

2,059,008

44,073,847

9,221,621

53,295,468

Depreciation

443,661

256,801

133,83944,077878,379

18,569896,949

Increase in property, plantand equipment andintangible assets

779,529

38,550233,317

18,951

1,070,349

542

1,070,891

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers

Other items

Notes:
1.

2.

(1) The adjustment amount of minus ¥236,418 thousand for segment income mainly includes amortization of goodwill totaling minus¥544,782 thousand and general administrative expenses that are not attributable to individual reporting segments amounting to minus¥573,352 thousand.
(2) The adjustment amount of ¥9,221,621 thousand for segment assets is mainly comprised of corporate assets of ¥2,429,363 thousand andthe balance of unamortized goodwill of ¥6,726,954 thousand. Meanwhile, corporate assets are primarily made up of surplus operating funds(cash and deposits).
(3) The adjustment amount of ¥18,569 thousand for depreciation and amortization relates to corporate assets that are not attributable toindividual reporting segments.
(4) The adjustment amount of ¥542 thousand for the amount of property, plant and equipment as well as intangible assets increase relates tocorporate assets that are not attributable to individual reporting segments.
Segment income matches operating income recorded on the consolidated statements of income.

Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)(Thousands of yen)
Reporting Segments

Adjustment
amount(Note 1)

Amountrecorded on
consolidated
statement ofincomeF.D.C.
Products
group

AS’TY
group

MISUZUage

Total

26,227,261

9,107,549

5,881,097

7,737,277

49,003,184―

49,003,184

43,084

1,445,808

24,225240,299

1,753,417(1,753,417)―

26,320,345

10,553,357

5,905,322

7,977,577

50,756,602(1,753,417)

49,003,184

Segment income (loss)

4,374,877

557,846(69,225)

160,497

5,023,995(117,910)

4,906,084

Segment assets

25,170,216

18,988,089

2,267,796

2,561,697

48,987,799

9,490,762

58,478,562

Depreciation

544,470

245,310

146,572

57,963994,315

26,256

1,020,572

Increase in property, plantand equipment andintangible assets

821,790

130,960

160,951

22,283

1,135,986

795

1,136,781

Operating revenues
Operating revenues tooutside customers
Intrasegment operating
revenues and transfers
Total

Other items

Notes:
1. (1) The adjustment amount of minus ¥117,910 thousand for segment income mainly includes amortization of goodwill― 19 ―

2.

totaling minus ¥520,643 thousand and general administrative expenses that are not attributable to individual reporting
segments amounting to minus ¥589,094 thousand.
(2) The adjustment amount of ¥9,490,762 thousand for segment assets is mainly comprised of corporate assets of¥5,774,496 thousand and the balance of unamortized goodwill of ¥6,206,310 thousand. Meanwhile, corporate assets areprimarily made up of surplus operating funds (cash and deposits).
(3) The adjustment amount of ¥26,256 thousand for depreciation and amortization relates to corporate assets that are not
attributable to individual reporting segments.
(4) The adjustment amount of ¥795 thousand for the amount of property, plant and equipment as well as intangible assets
increase relates to corporate assets that are not attributable to individual reporting segments.
Segment income (loss) matches operating income recorded on the consolidated statements of income.

(Related Information)
Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)
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 Informationa.

Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.

b.

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, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)
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 Informationa.

Net sales
As the total of operating revenues to outside customers based in Japan of all business segments represented over
90% of the Company’s total operating revenues in the consolidated statements of income, geographicalinformation has been omitted.

b.

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, geographical information has
been omitted.

3. Information by Major Customer
This information has been omitted because there are no specific customers to whom sales exceed 10% or moreof the total operating revenues posted in the consolidated statement of income.

― 20 ―

(Information Concerning the Impairment loss of Noncurrent Assets by Reporting Segment)
Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)(Thousands of yen)
Reporting Segments
F.D.C.
Products
group

Impairment loss

101,888

AS’TY
group

MISUZU15,14965,997

age
1,053

Total

Adjustment
amount―184,088

Total

184,088

Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)(Thousands of yen)
Reporting Segments
F.D.C.
Products
group

Impairment loss

115,048

AS’TY
group
9,809

MISUZU
69,301

age

Total

45,516239,675

Adjustment
amount―Total

239,675(Information Concerning the Amount of Goodwill Amortized and the Balance of Unamortized
Goodwill by Reporting Segment)
Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)
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 ¥544,782 thousand and ¥6,726,954 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)
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 ¥520,643 thousand and ¥6,206,310 thousand, respectively. The amounts of goodwill amortizedand balance of unamortized goodwill related to goodwill that arose at the time of stock exchange.

(Information Concerning the Gain on Negative Goodwill by Reporting Segment)
Fiscal 2012, the Fiscal Year Ended February 28, 2013 (March 1, 2012 to February 28, 2013)
Not applicable.
Fiscal 2013, the Fiscal Year Ended February 28, 2014 (March 1, 2013 to February 28, 2014)
Not applicable.

― 21 ―

(Per Share Information)(Yen)
Fiscal 2012
(March 1, 2012 to February 28, 2013)

1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

Fiscal 2013
(March 1, 2013 to February 28, 2014)

1,509.31
101.64—1.
2.
3.

Net assets per share
Earnings per share
Net income per share (diluted)

1,609.45
116.40116.24

Notes:
1. Since there was no dilution of stocks net income per diluted share data has been omitted.
2. The basis for calculating earnings per share and net income per diluted share is presented as follows:(Thousands of yen unless otherwise stated)

Total earnings per share
Net income
Net income applicable to shareholders of common stock
Net income 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 2012
(March 1, 2012 toFebruary 28, 2013)

Fiscal 2013
(March 1, 2013 to
February 28, 2014)

2,785,454—
2,785,454
27,404,760
New share subscription rights
issued on June 16, 2010
1st issuance of new sharesubscription rights
Common stock:35,000 shares
2nd issuance of new sharesubscription rights
Common stock:
112,000 shares
New share subscription rights
issued on June 13, 2012
3rd issuance of new sharesubscription rights
Common stock:36,000 shares
4th issuance of new sharesubscription rights
Common stock:
22,600 shares

3,183,974—
3,183,974
27,353,992
New share subscription rights
issued on June 12, 2013
5th issuance of new sharesubscription rights
Common stock:
118,400 shares

3. The basis for calculating net assets per share is presented as follows:(Thousands of yen unless otherwise stated)
Fiscal 2012
(March 1, 2012 toFebruary 28, 2013)

Total net asset recorded on consolidated balance sheets
Deduction amount of total net asset recorded on consolidatedbalance sheets
Subscription rights to shares
Minority interests
Net assets applicable to common stock
Number of common stock utilized for the calculation of net
assets per share (Shares)

41,106,639

Fiscal 2013
(March 1, 2013 to
February 28, 2014)

44,136,288

20,366

19,421(19,195)(1,171)
41,086,273(19,421)(—)
44,116,866

27,221,906

27,411,068

4. The Company’s shares held by the trust-type employee ownership plan are recognized as treasury stock inconsolidated financial statements. As a result, the number of common shares as of the end of the period used to
calculate the aforementioned net assets per share amount as well as the average number of shares for the period used
to calculate the aforementioned earnings per share amount are after deducting the Company’s shares held by thetrust-type employee ownership plan.

(Important Subsequent Events)
Not applicable.

― 22 ―

4. NON-CONSOLIDATED FINANCIAL STATEMENTS(1) Non-Consolidated Balance Sheets(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2013

February 28, 2014

(As of February 28, 2013)(As of February 28, 2014)ASSETS
Current assets:
Cash and time deposits

227,148

234,823

Short-term investment securities

1,590,000

4,850,000

Deferred tax assets
Short-term loans receivable to subsidiaries and affiliates

15,001

13,5301,453,112

1,336,672

Accounts receivable-other

85,808109,057

Other

6,011

6,484

3,377,082

6,550,568

Buildings, net

818

681

Tools, furniture and fixtures, net

232

619

Lease assets

6,300

3,600

Total property, plant and equipment

7,350

4,901

Total current assets
Noncurrent assets:
Property, plant and equipment:

Intangible assets:
Software946

190

Lease assets

51,61075,032

Total intangible assets

52,55675,222

Investments and other assets:
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital of subsidiaries and affiliates
Long-term loans receivable from subsidiaries and654,420

655,382

29,204,180

29,204,180

172,716

172,716—

81,520affiliates
Deferred tax assets

39,724

29,629Other

52,634

16,43330,123,674

30,159,861

Total investments and other assets
Total noncurrent assets
Total assets― 23 ―

30,183,581

30,239,984

33,560,664

36,790,553

(Thousands of yen)
End of the Fiscal Year Ended

End of the Fiscal Year Ended

February 28, 2013

February 28, 2014

(As of February 28, 2013)(As of February 28, 2014)

LIABILITIESCurrent liabilities:
Short-term loans payable

9,021,573

11,950,438

Lease obligations

19,142

28,791

Accounts payable-other

22,52436,344

Accrued expenses

8,812

11,270

Income taxes payable

44,611

46,601

Provision for bonuses

17,05013,670

Provision for directors’ bonuses

16,70013,150Other

14,7598,970

9,165,175

12,109,237

Long-term loans payable

243,160

150,930

Lease obligations

42,07954,359Provision for retirement benefits

2,864

3,155

105,120

80,100Total current liabilities
Noncurrent liabilities:

Provision for directors retirement benefits
Other

22,900—Total noncurrent liabilities

416,123

288,5449,581,298

12,397,781

2,486,520

2,486,520

14,838,777

14,838,777

Total liabilities
NET ASSETS
Shareholders’ equity:
Capital stock
Capital surplus
Legal reserve
Other capital surplus—

21,800Total capital surplus

14,838,777

14,860,578

417,300

417,300

6,794,500

6,794,500

Retained earnings:
Profit reserve
Other retained earnings
Other reserve
Retained earnings brought forward
Total retained earnings

287,358

511,5637,499,158

7,723,363

Treasury stock(864,066)(697,210)

Total shareholders’ equity

23,960,389

24,373,251

Valuation difference on available-for-sale securities

(218)

98

Total valuation and translation adjustments

(218)

98

19,195

19,421

23,979,365

24,392,771

33,560,664

36,790,553

Valuation and translation adjustments:

Subscription rights to shares
Total net assets
Total liabilities and net assets― 24 ―

(2) Non-Consolidated Statements of Income(Thousands of yen)
Fiscal 2012

Fiscal 2013

(March 1, 2012 to(March 1, 2013 to

February 28, 2013)

February 28, 2014)

Operating revenue

1,524,027

1,651,880

Operating gross profit

1,524,027

1,651,880

Advertising expenses

45,57347,440

Directors' compensations

91,08057,120

Salaries and allowance

133,978

140,458

Provision for bonuses

17,05013,670

Provision for directors' bonuses

16,70013,150Retirement benefit expenses

1,232

291

Provision for directors' retirement benefits

15,30020,250

Selling, general and administrative expenses

Legal welfare expenses

30,85528,484

Welfare expenses

13,445(7,755)Business consignment expenses

34,92145,483

Leasehold and office rents

8,472

9,384

Commission fee

19,37625,813

Depreciation

18,56926,256

Other

99,826

142,879

Total Selling, general and administrative expenses
Operating income

546,380

562,926

977,646

1,088,954

14,352

15,255Non-operating income
Interest income
Dividend income

54

56

Foreign exchange losses

0

7,264

2,397

1,734

Gain on forfeiture of unclaimed dividends
Other
Total Non-operating income

589

385

17,395

24,69542,290Non-operating expenses
Interest expenses

41,688

Other

1,895

231

Total non-operating expenses

43,58342,521

Ordinary income

951,457

1,071,127

Income before income taxes

951,457

1,071,127

Income taxes ― current

159,662

153,400

Income taxes ― deferred(10,422)

11,389Total income taxes

149,239

164,790

Net income

802,218

906,337― 25 ―

(3) Non-Consolidated Statements of Changes in Net Assets(Thousands of yen)

Fiscal 2012 (March 1, 2012 to February 28, 2013)(Thousands of yen unless otherwise stated)
Shareholders’ equity
Capital surplus
Commonstock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Retained earnings
Other retained earnings

2,486,520

Legal reserve

Total capitalsurplusProfit reserve

14,838,777

14,838,777

417,300

Retainedearnings
brought
forwardGeneralreserve
6,794,500

Total retained
earnings

99,3097,311,109(614,169)(614,169)

802,218

802,218(285,799)

—

—

—

—

—

188,049

188,0492,486,520

14,838,777

14,838,777

417,300

6,794,500

287,358

7,499,158(Thousands of yen unless otherwise stated)
Valuation and translation
adjustments

Shareholders’ equity
Treasury stock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Treasurystock

Treasurystock(held byEmployee
Stock
Ownership
Trust)

Total
treasurystock(370,844)(298,714)(669,559)

Total
shareholders’equityValuationdifference on
available-forsale
securities

Total
valuationandtranslation
adjustments

Subscription
rights tosharesTotal net
assets23,966,847

(726)

(726)

14,28623,980,406(614,169)(285,799)
91,292(614,169)

802,218

802,218(285,799)(285,799)(285,799)

91,292

91,292

91,292

507

507

4,908

5,416

(285,799)

91,292(194,506)(6,457)

507

507

4,908

(1,041)(654,644)(207,422)(864,066)

23,960,389

(218)

(218)

19,19523,979,365― 26 ―

Fiscal 2013 (March 1, 2013 to February 28, 2014)(Thousands of yen unless otherwise stated)
Shareholders’ equity
Capital surplus
Commonstock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in items
excludingshareholders’ equity
during the period
Total
Balance at the end ofcurrent period

2,486,520

Retained earnings
Other retained earnings

Other
capitalsurplusLegalreserve

Total capitalsurplus—14,838,777

14,838,777

21,80021,800

Profitreserve

Retainedearnings
brought
forwardGeneralreserve

417,300

6,794,500

Total
retainedearnings

287,358

7,499,158(682,132)(682,132)

906,337

906,337——

21,80021,800——224,204

224,204

2,486,520

14,838,777

21,80014,860,578

417,300

6,794,500

511,563

7,723,363(Thousands of yen unless otherwise stated)
Valuation and translation
adjustments

Shareholders’ equity
Treasury stock

Balance at the end of
previous period
Changes of items
during the period
Dividends fromsurplus
Net income
Purchase of treasury
stock
Disposal of treasury
stock
Sales of treasury
stock from
Employee Stock
Ownership Trust
Net changes in
items excluding
shareholders’ equity
during the period
Total
Balance at the end ofcurrent period

Treasurystock

Treasurystock(held byEmployee
Stock
Ownership
Trust)

Total
treasurystock(656,644)(207,422)(864,066)

Total
shareholders’equityValuationdifferenceonavailable-for-sale
securities

Total
valuationandtranslation
adjustments

Subscription
rights toshares23,960,389

(218)

(218)

19,195

Total net
assets23,979,365(682,132)(682,132)

906,337

906,337

(554)

(554)

(554)

(554)

108,160

108,160

129,961

129,961

59,25059,25059,25059,250

317

317

226

544

107,605

59,250166,855

412,861

317

317

226

413,405(549,038)(148,172)(697,210)

24,373,251

98

98

19,421

24,392,771― 27 ―