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

Investors’ Presentation
Results for the First Half of Fiscal 2020
(The Fiscal Year Ending February 28, 2021)
October 12, 2020

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2020,
the Fiscal Year Ending February 28, 2021
Ⅱ. Measures for the Second Half of Fiscal 2020 and BusinessResults Forecasts for the Full Fiscal Year
Ⅲ. Medium-Term Strategic Approach

Saishi Kimura. Chairman and Representative Director・CEO
Tohru Hirota, President and Representative Director・COO
YONDOSHI HOLDINGS INC.
Note: Amounts identified in this report are presented in millions of yen rounded down. Percentage figures are calculated from raw data.

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

2Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2020,
the Fiscal Year Ending February 28, 2021
Ⅱ. Measures for the Second Half of Fiscal 2020 and BusinessResults Forecasts for the Full Fiscal Year
Ⅲ. Medium-Term Strategic ApproachImpact of COVID-19
Net sales and profits in the Jewelry Business weresignificantly impacted by COVID-19
Jewelry BusinessImplemented various measures including the suspension of business while
shortening operating hours at certain stores; substantial drop in sales
especially in April and May(Business suspended at all stores from April 25 to May 6; business suspended at more than 80% of
all stores for 27 days and more than 50% for 43 days)

Coinciding with the lifting of the state of emergency, steps taken to resume
business after implementing measures aimed at avoiding the 3 Cs of
crowded places, close-contact settings, and confined and enclosed spaces atstores and preventing further spread of COVID-19

State of emergency
declaration
Stay-at-home request

Apparel Business

The everyday fashion brand PALETTE continued to operate even after
the state of emergency declaration in order to fulfill its role as part of thesocial infrastructure supporting the lives of local customers

This lead to increased awareness and an upswing in PALETTE
membership, which in turn contributed to robust growth fromMay

4

Impact of COVID-19
Amid the government’s declaration of a state of emergency and the transition to a new pattern of behavior
that seeks to avoid the 3 Cs of crowded places, close-contact settings, and confined and enclosed spaces,
working diligently to continue business operations while prioritizing the safety of customers and employees
Changes in theoperatingenvironment

Assumed risks

Consumption
patterns

Drop in brick-and-mortar
store sales

 Implement thoroughgoing infection control measures andprovide customers with peace of mind at stores
 Strengthen e-commerce and online promotions

Work styles

Spread of the pandemic as aresult of people commuting
and going to work Introduce various work-related measures including
telecommuting (current recommendation to work from home
3 days a week), web conferencing, and staggered work hours
 Suspend such promotional events as exhibitions
 Hold store manager meetings online
 Install acrylic plates to help prevent the spread of droplet
infection
 Conduct voluntary PCR testing Restrict business trips

Travel restrictions

Stagnation of the global
supply chain

 Increase the number of production managers in Bangladesh
to maintain cooperation and quality control systems atcooperating factories

Response and current situation

5Overview of Consolidated Operating Results for
the First Half of Fiscal 2020 (1) Decrease in revenue and earnings due to the impact of COVID-19
 Looking at exceeding earnings forecasts disclosed on July 8
Thorough reduction in overhead expenses amid tense operations conditions
Robust trends in the everyday fashion brand PALETTE
Net sales: ¥17,980 million (－18.0% YoY ) Operating income: ¥1,040 million (－52.5% YoY)
Ordinary income: ¥1,280 million (－45.8% YoY) Net income: ¥603 million (－59.4 % YoY)
(Millions of yen)

Net sales
21,925

Operating income

Ordinary income
2,370

2,195

Net income
1,484

17,980

1,043－18.0%
1H FY2019
Actual Results

1H FY2020
Actual Results－52.5%
1H FY2019
1H FY2020
1
2
Actual Results Actual Results

1,283
603

－45.8%
1H FY2019
1H FY2020
Actual Results Actual Results－59.4%
1H FY2019
1H FY2020
Actual Results Actual Results

6

Overview of Consolidated Operating Results for
the First Half of Fiscal 2020 (2)1H FY2019 (2019/8)(Millions of yen, %)ActualResults(%)

1H FY2020 (2020/8)
Jul. 8Published Value（％）

ActualResults(%)

YoY

Jul. 8Published Value

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

21,925100.0

17,500100.0

17,980

100.0

－18.0

＋2.7

Gross profit

12,408

56.6

9,257

52.9

9,474

52.7

－23.6

＋2.3

－3.9

－0.2

Gross profit margin56.6

Selling, general andadministrative expenses

10,213

46.6

8,357

47.8

8,431

46.9

－17.4

＋0.9

Amortization of
goodwill

248

1.1

248

1.4

248

1.4

±0

±0

Operating income

2,195

10.0

900

5.1

1,043

5.8

－52.5

＋15.9

Ordinary income

2,370

10.8

1,100

6.3

1,283

7.1

－45.9

＋16.6

Net income

1,484

6.8

400

2.3

603

3.4

－59.4

＋50.8

≪Reference ≫Key management indicators(Millions of yen, %)1H FY2019 (2019/8)
ActualResults

52.7

52.9

1H FY2020 (2020/8)
Jul. 8Published Value

(%)

（％）

ActualResults(%)

YoY

Jul. 8Published Value

Increase(Decrease) (%)

Increase(Decrease) (%)

Operating income before theamortization of goodwill

2,443

11.1

1,148

6.6

1,291

7.2

－47.2

＋12.5

Net income before theamortization of goodwill

1,732

7.9

648

3.7

851

4.7

－50.9

＋31.3

* Operating income before the amortization of goodwill = operating income + goodwill amortization; net income before theamortization of goodwill = profit attributable to owners of parent + goodwill amortization

7

Operating income(Millions of yen)
Net sales

2,195

Cost of sales ratio
1H FY2019 1H FY 2020
43.4% ⇒ 47.3%+3.9ptSG&A expenses to net sales ratio
1H FY2019 1H FY 2020
46.6% ⇒ 46.9%+0.3pt－3,945

OperatingincomemarginSG&A
expenses

10.0%－1,782

1,043
Operatingincomemargin5.8%
Operatingincome1H FY2019(2019/8)

Cost ofsales－1,012

Operatingincome1H FY2020(2020/8)

8

Trends in Quarterly Business Results
Trends in Net Sales by Quarter
1Q(Millions of yen)

3Q

2Q

4Q
15,321

11,588 11,341 11,216 11,143

11,347 11,086 10,878 10,782

10,130

11,541 11,407 11,143 10,850

'17/2

'21/2

'17/2

14,226 13,880

12,194

7,850

'17/2

'18/2

'19/2

'20/2

'21/2

'18/2

'19/2

'20/2

'18/2

'19/2

'20/2

'21/2

'17/2

'18/2

'19/2

Trends in Operating Income by Quarter
1Q

2Q

'20/2

'21/2

((Millions of yen)

3Q

4Q
2,564

2,615
1,982

1,547

1,341

1,196

1,243

1,157

1,067

1,261
952

797

818

1,079

1,007

'18/2

'19/2

951

829

225
'17/2

'18/2

'19/2

'20/2

'21/2

'17/2

'18/2

'19/2

'20/2

'21/2

'17/2

'20/2

'21/2

'17/2

'18/2

'19/2

'20/2

'21/2

1Q
FY20192Q
FY20191H
FY2019(2019/8)

1Q
FY20202Q
FY20201H
FY2020(2020/8)

Increase /(Decrease)

Net sales

11,143

10,782

21,925

7,850

10,13017,980(3,945)－18.0

Gross profit

6,379

6,029

12,408

4,114

5,360

9,474

(2,934)－23.6

Operating income

1,243

952

2,195

225

818

1,043

(1,152)－52.5(Millionsof yen)(単位：百万円)

YoY

9

Overview of Business Results by Segment～The Jewelry Business Despite a decline in both revenue and earnings due to COVID-19 and the need to close stores,
secure operating income of approximately ¥700 million
 Stores reopened with sales are on the road to recovery after lifting of the state of emergency(Millions of yen)

Net sales
12,671

Operating income

Ordinary income

1,815

1,867

Net income
1,189

8,534

－32.6%
1H FY2019
1
ActualResults

1H FY2020
2
ActualResults－62.2%
1H FY2019
ActualResults

ActualResults

329

1H FY2020
ActualResults

1H FY2019
ActualResults

1H FY2019
ActualResults

1H FY2020 (2020/8)
Jul. 8Published Value(%)－72.3%－60.6%

1H FY2020
ActualResults

1H FY2019 (2019/8)(Millions ofyen, %)

736

686

ActualResults（％）(%)

1H FY2020
ActualResults

YoY

Jul. 8Published Value

Increase(Decrease) (%)

Increase(Decrease) (%)

Net sales

12,671

100.0

8,563

100.0

8,534

100.0

－32.6

－0.3

OperatingincomeOrdinary
income

1,815

14.3

706

8.2

686

8.0

－62.2

－2.7

1,867

14.7

728

8.5

736

8.6

－60.6

+1.1

Net income

1,189

9.4

258

3.0

329

3.9

－72.3

+27.6

10

Jewelry Business:
Trends in Monthly Existing Store and Online Sales Recovery in existing store sales in June following the lifting of the state of emergency
 Five consecutive months of year-on-year double-digit percentage growth in online sales from
April
Existing store sales(%)

e-commerce sales
95.8

100

93.8

194.3

200
87.4
148.2

148.8

150

67.7

102.8
50

129

129.8

Jul.

Aug.

100

50

31.3
16.9
0
Mar.

Apr.

YoY

May

Jun.

March

Jul.

April

0
Mar.

Aug.

May

June

Apr.

May

July

Jun.

August1H

Existing store sales

67.7

16.9

31.3

95.8

93.8

87.4

67.0

e-commerce sales

102.8

148.2

194.3

148.8

129.0

129.8

139.6

（ Both of existing store sales and e-commerce sales: Excluding MAISON JEWELL and Luria 4ºC sales)11Jewelry Business: Trends in Monthly
Existing Store Sales by Brand Firm trends in 4ºC fashion jewelry Delay in a 4ºC bridal jewelry recovery due to a weak bridal market
 Narrowing in the degree of Canal 4ºC existing store fashion jewelry sales throughefforts to adjust brands

YoY

(%)

FY20191H

3Q

FY2020
4Q

1Q

June

July

August2Q①4ºC fashion jewelry

99.1

104.3

93.2

44.5

102.1

99.4

93.4

98.2

②Canal4ºC fashion
jewelry

99.2

88.1

75.1

37.9

94.7

95.4

89.5

93.2

Deference （②-①）

0.1

－16.2

－18.1

－6.7

－7.4

－4.1

－3.9

－5.0

4ºC Bridal(Department store)

104.1

100.1

90.0

28.9

90.0

89.7

83.1

87.5

4ºC Bridal(Specialty store)

103.4

99.6

89.3

35.1

95.2

89.7

84.9

89.9

Canal4ºC Bridal

102.5

88.5

75.4

29.5

88.8

87.9

76.4

84.5
12

Overview of Business Results by Segment～The Apparel Business

Increase in Apparel Business revenue and earnings on the back of robust trends in the everyday fashion
brand PALETTE
Operating income in the Apparel Business trending in excess of plans owing to reductions in overhead
expenses
Increase in revenue in the Everyday Fashion Business due to opening of new stores and robust results atexisting stores; record high profits(Millions of yen)

Net sales
9,254

Operating income

9,445

Ordinary income

567

490

Net income

695

613

429
306

+2.1%

1H FY2019
Actual Results+15.8%

1H FY2020
Actual Results

1H FY2019
Actual Results

Net sales
OperatingincomeOrdinary
incomeNet income

ActualResults+40.1%

1H FY2019
Actual Results

1H FY2020
Actual Results

1H FY2020 (2020/8)
Jul. 8Published Value(%)

1H FY2019
Actual Results

1H FY2020
Actual Results

1H FY2019 (2019/8)(Millions ofyen, %)+13.3%

ActualResults（％）(%)

1H FY2020
Actual Results

YoYJul. 8Published Value

Increase(Decrease) (%)

Increase(Decrease) (%)

9,254

100.0

8,977

100.0

9,445

100.0

+2.1

+5.2

490

5.3

403

4.5

567

6.0

+15.8

+40.7

613

6.6

528

5.9

695

7.4

+13.3

+31.6

306

3.3

323

3.6

429

4.5

+40.1

+32.8

13

Apparel Business:
Trends in Monthly PALETTE Existing Store Sales
 Continued to operate even after the state of emergency declaration in order to fulfill its roleas part of the social infrastructure Four consecutive months of year-on-year existing store sales growth from May thanks tosuccessful efforts aimed at increasing awareness and capturing nesting demand
(%)

126.9

130
120
110

109.5

108.2

Jul.

Aug.

103.4

100
90

95.1

80

73.8

70
60
50
Mar.

Apr.

March
Existing stores

95.1

May

April

73.8

Jun.

May

June

July

103.4

126.9

109.5

August

108.2

1H

103.2

14

Overview of Financial Position and Cash Flows(Consolidated)

Total assets, liabilities, and net worth stood at ¥53.6 billion, ¥13.4 billion , and ¥40.1 billion, respectivelyCash flows from operating activities: Substantial improvement in the fiscal year under review following
income taxes paid of ¥4.8 billion in the previous fiscal yearCash flows from financing activities: Cash dividends of approximately ¥0.9 billion as a part of shareholder
returns

Aim for sustainable growth on the back of stable management based on the Company’s strength ingenerating cash and its solid financial standing

Financial Position

Cash Flows
As of August 31, 2020

Total liabilities¥ 13.4 billion

Total assets¥40.1 billion

Total net assets¥53.6 billion(Millions of yen)

1H FY2019(2019/8)

1H FY2020(2020/8)

Increase(Decrease)

Operating cash
flows

405

2,813

+2,408Investingcash flows

23(1,815)(1,838)Financing cash
flows

(3,640)(227)+3,413Free
cash flows

+428

+998

+570
15

Status and Plan of Store Openings and Closures
 Jewelry Business: Two brands closed in Japan; withdrawal from the China market
 Apparel Business: Steady progress in opening PALETTE stores
ApparelBusiness

Jewelry BusinessJapan

FY2019(2020/2)

FY2020
1H Actual
Results(2020/8)

FY20202H Plan(2021/2)

Total
Overseas

PALETTE

183

3

73

259

0

2

0

5

7

0

7

8

3

1

12

68

40

66

177

0

77

254

0

0

0

1

1

ー

4

5

Storesclosed

0

0

0

3

3

ー

1

4

Fiscalyearend

3

68

40

64

175

ー

80

255

Roadsidebutique

Department
store

Bridal Shop

Fashion
Building

Fiscalyearend

2

68

40

73

Storesopened110Storesclosed

0

1

2Hend

3

StoresopenedTotal

16

Status and Plan of the Number of Domestic
Brand Stores in the Jewelry Business

4ºC
FY2019(2020/2)

FY2020
1H Actual
Results(2020/8)

FY2020 2H
Plan(2021/2)

4ºC
BRIDAL

Canal4ºC

EAU
DOUCE
4ºC

MAISONJEWELL

Jewelry
Total

Luria 4ºC

Total

Fiscal yearend

83

40

49

21

5

198

25

223

Storesopened

2

0

0

0

0

2

0

2

Stores closed

1

0

2

0

5

8

25

33

2H-end

84

40

47

21

0

192

0

192

Storesopened

0

0

1

0

ー

1

ー

1

Stores closed

0

0

3

0

ー

3

ー

3

Fiscal yearend

84

40

45

21

ー

190

ー

190

* Composite stores that handle multiple brands are recorded as a single store by each individual brand* Refers to the internal relocation of one store within 4ºC store openings/closing

17

Shareholder Returns Policy, Cash DividendsPositioned efforts to increase the level of profit return through the payment of stable and continuous cash
dividends and the flexible repurchase of own shares at the heart of the Company’s shareholder returns
policyContinue to emphasize consecutive increases in cash dividends with the aim of paying a cash dividend of¥100 per share in the future
Plan to increase both the interim and period-end dividend by ¥0.50 to ¥40.50 per share for an annual cash
dividend of ¥81.00 per share for the fiscal year ending February 28, 2021, up ¥1.00 year on year (10thconsecutive fiscal year of cash dividend increase)

Annual cash dividend results and outlook
75

80

81

(Yen)

65
50
40
30

32

20

21

22

FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019FY2020
Forecast(2011/2)(2012/2)(2013/3)(2014/2)(2015/2)(2016/2)(2017/2)(2018/2)(2019/2)(2020/2)(2021/2)

18

Repurchase of the Company’s Own Shares Undertook repurchase of the Company’s own shares for a third
consecutive fiscal year with the aim of increasing the level of shareholder
returns and improving capital efficiency

 Press release issued on October 12, 2020

Repurchase of the Company’s own shares• Aggregate cost of share repurchase： 300,000 shares (¥700,000,000)※1.38% of the Company’s total issued and outstanding shares (excluding treasury stock)• Repurchase period： October 13, 2020 to January 13, 2021
• Method of repurchase： Market purchase based on a trust agreement

19Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2020,
the Fiscal Year Ending February 28, 2021
Ⅱ. Measures for the Second Half of Fiscal 2020 and BusinessResults Forecasts for the Full Fiscal Year
Ⅲ. Medium-Term Strategic Approach

Outlook Regarding the Impact of COVID-19
in the Second Half
Assumptions underpinning full fiscal year business results forecasts
 Despite the spread of COVID-19 slightly tapering off, consumption trends expected to remain
uncertain with the effects of the pandemic to linger throughout the fiscal year under review

Jewelry Business 4ºC brand trends projected to remain steady due to the high level of gift needs
 Conditions throughout the bridal market anticipated to remain harsh for the foreseeable
futureApparel Business Despite the risk of a downturn in orders owing to a deterioration in the retail sector
operating environment, various steps will be taken to offset the decline including efforts to
expand sales channels in the Apparel Manufacturing Business Impact of COVID-19 on the Everyday Fashion Business projected to be limited owing to thenature of the business which revolves mainly around daily necessities in small trading zones
21Measures for the Second Half of Fiscal 2020
Jewelry Business(1) Implement 4ºC brand measures for the peak Christmas period in response to COVID-19(2) Improve the appeal of the 4ºC BRIDAL brand by rolling our Stella Maris products(3) Increase earnings by revising the Canal 4ºC brand(4) Strengthen e-commerce initiatives and expand e-commerce sales(5) Build relationships with customers by strengthening digital initiatives

Apparel Business(1) Enhance material and product marketing capabilities in the Apparel Manufacturing Business(2) Strengthen, upgrade and expand overseas production bases in such countries as Bangladesh andVietnam(3) Further entrench the Group’s dominant position in the Kansai area by opening PALETTE
stores in the Everyday Fashion Business(4) Reduce the cost of sales ratio of PALETTE products by further expanding localization of theprocessing function as well as container transport22Jewelry Business

Implement 4ºC brand measures for the peak
Christmas period in response to COVID-19
 Position 4ºC as the brand of choice and that special link that binds the feelings ofcouples over the Christmas season in the wake of COVID-19

23

Jewelry Business

Improve the appeal of the 4ºC BRIDAL brandby rolling our Stella Maris products Based on the concept of star-shining brilliance, rolled out the new “Guiding Star”
Stella Maris collection from August 14 as a way to lead couples to a new beginning

4ºC BRIDAL Stella Maris

24

Jewelry Business

Increase earnings by revising the Canal 4ºC brand Successful steps taken to revise the Canal 4ºC brand; recovery trends from June Aim for success during the peak Christmas periods by recapturing the existingcustomer base

Photo by Kozo Takayama（Canal4ºC Lalaport Aichi Togo Store）

25

Jewelry Business

Strengthen e-commerce initiatives and expand
e-commerce sales
 Focus on expanding brand website content, including video and LIVE commerce With the trend to refrain from going out of the home expected to continue,
respond to customer needs to the maximum extent possible by strengthening
e-commerce response capabilities（Canal4ºC LIVE TV）

26

Jewelry Business

Build relationships with customers by strengthening
digital initiatives
 Utilize the CRM system to strengthen engagement and increase the repeat rate
(approximately 200,000 members)
 Birthday Collection DM, opener purchase rate: 5.1% (June-August)（4ºC Birth Stone Collection）

27

Apparel Business

Enhance material and product marketing capabilities
and strengthen, upgrade and expand overseas production bases
 Establish competitive advantage by increasing functional and sustainable material
marketing capabilities Work to further augment overseas production bases in such countries as Bangladesh
and Vietnam(Sustainable material product ECO LEATHER GOODS)(Vietnam: Subcontracting factory in Ho Chi Minh)

28

Apparel Business

Further entrench the Group’s dominant position in the Kansai
area by opening PALETTE stores and reduce the cost of sales ratio Work toward the ¥10 billion sales milestone by opening eight new PALETTE stores
 Strengthen efforts to promote new PALETTE members at new stores; continue to undertake
effective promotional measures(PALETTE members: Approximately 350,000 as of the end of August) Reduce the cost of sales ration by further expanding localization of the processing function as
well as container transport(PALETTE Izumiya Kadoma Store)(PALETTE Hirano Ekimae Store)

29

Consolidated Business Results Forecasts
for Fiscal 2020
FY2019 (2020/2)(Millions of yen, %)Results

FY2020 (2021/2)（％）

Full-year
forecasts

YoY

（％）

Increase(Decrease) (%)

Net sales

44,970100.0

39,000

100.0

－13.3

Gross profit

25,78057.3

21,450

55.0

－16.8

Gross profit margin57.3

Selling, general andadministrative expenses

21,804

48.5

18,550

47.6

－14.9

Amortization of
goodwill

496

1.1

496

1.3

±0

Operating income

3,975

8.8

2,900

7.4

－27.1

Ordinary income

4,312

9.6

3,300

8.5

－23.5

Net income

2,475

5.5

2,000

5.1

－19.2

≪Reference ≫55.0

FY2019 (2020/2)－2.3

FY2020 (2021/2)

YoY

Operating income before
the amortization of
goodwill

4,471

9.9

3,396

8.7

－24.0

Net income before theamortization of goodwill

2,971

6.6

2,496

6.4

－16.0

* Operating income before the amortization of goodwill = operating income + goodwill amortization; net income before theamortization of goodwill = profit attributable to owners of parent + goodwill amortization

30

Consolidated Business Results Forecasts by Segment
for Fiscal 2020 (Figures are after accounting for intrasegment net sales and transfers)
FY2019(2020/2)(Millions ofyen, %)The Jewelry
Business

The ApparelBusiness

Results

FY2020 (2021/2)
1H Results

2H
Forecasts

Full-year
Forecasts

YoY

Net sales

26,987

8,535

12,665

21,200－21.4

Operatingincome

3,319

687

1,813

2,500

－24.7

Ordinary
income

3,418

736

1,864

2,600

－23.9

Net income

2,129

329

1,271

1,600

－24.8

Net sales

17,983

9,446

8,354

17,800－1.0

Operatingincome

758

567

193

760

+0.2

Ordinary
income

980

695

265

960

－2.0

Net income

512

429

191

620

+21.1
31

Contents
Ⅰ. Overview and Summary of the First Half of Fiscal 2020,
the Fiscal Year Ending February 28, 2021
Ⅱ. Measures for the Second Half of Fiscal 2020 and BusinessResults Forecasts for the Full Fiscal Year
Ⅲ. Medium-Term Strategic ApproachFuture Changes in the Environment
Changes in the structure of society ad industry continue to change dramaticallyas COVID-19 restricts contact between people and the ability to go out

Changes in the environment

Impact on the Group

Expanding opportunities for a
Initiatives directed toward building opportunities forbroader consumer base toengagement with customers in a society where online and offline
experience digitalchannels are merged
consumption
Growing incidence of
teleworking and changes inwork styles

Promote a change in attitudes as well as the use of digitaltechnology and development of systems in an effort to strengthen
the organization’s structure and work toward a more productive
organization

Deterioration in employment
and disposable income
environments; risk of a
prolonged slump in
consumption

Push forward with structural reforms to improve profitability inthe face of low growth33

Assumptions That Underpin the Sixth Medium-Term
Management Plan and Direction
The Sixth Medium-Term Management Plan, which starts from the fiscal
year ending February 28, 2022, is a three-year plan to build afoundation for the next stage of growth

Recognizing the challenging business environment, improve
profitability by promoting structural reform

Jewelry Business Proactively engage in such customer-driven initiatives as DX
support in an effort to generate future growth Enhance productivity and work to maintain a high earnings
platform

34

Assumptions That Underpin the Sixth Medium-Term
Management Plan and Direction
The Sixth Medium-Term Management Plan, which starts from the fiscal
year ending February 28, 2022, is a three-year plan to build afoundation for the next stage of growth

Recognizing the challenging business environment, improve
profitability by promoting structural reform

Apparel Business Aim for continued stable and sustainable profit growth as a stableearnings platform Aim for a 100-strong store network by further entrench the Group’s
dominant position in the Kansai area through the opening PALETTE
stores in the Everyday Fashion Business

ESG initiatives

 Continue to contribute to addressing the SDGs and resolving social
issues through business activities
 Further refine management strategies through enhanced information
disclosure and high-quality dialogue with each stakeholder
35

Activities Aimed at Addressing ESG Issues
 As an RJC certified company, F.D.C. Products is working diligently to help
improve the reliability and standard of the jewelry market in each field※What is the RJC・・・
The Responsible Jewellery Council is an international not-for-profit, standards and certification organization. Coveringsocial and environmental responsibility focusing on the jewelry industry, the Council strives to realize responsible businesspractices for diamonds, gold and platinum across the entire jewelry supply chain and processes from mine to retail.

 Continuously support efforts to solve water-related issues as trustees of theJapan Water Forum36

Activities Aimed at Addressing ESG Issues
 AS’TY: Donating masks to Hiroshima City
In late April, when masks were hard to come by, 5,000 masks were donated to the cityof Hiroshima to help prevent the spread of COVID-19

 Canal 4ºC: Rolling out #Smile Program

Planned and marketed charity products through Canal 4ºC stores and the official
online shop, donating 8% to 10% of sales to the Japanese Red Cross Society as a part ofefforts to support measures aimed at preventing further spread of COVID-19(Donating mask to Hiroshima City (Photo courtesy of The Chugoku Shimbun))(Canal 4ºC #Smile Program)37

Activities Aimed at Addressing ESG Issues
 AS’TY: Donating bath towels to facilities for the elderly
Coinciding with Respect-for-the-Aged Day, donated bath towels to nursing home welfare facilities;
this initiative has continued uninterrupted since 1972 with the cumulative number of bath towels
donated totaling approximately 270 million(Donating bath towels to nursing home welfare facilities)

38

Toward Stable and Continuous Growth～Creating Sustainable Value
Work toward enhancing value in the three jewelry SPA, apparel ODM, andretail businesses
VisionInputsBusinesses

Outputs

Customers

Jewelry SPA

Customers

Employees

Employees

Manufacturers

Manufacturers

Partnercompanies

Apparel OEM

RetailPartnercompanies
SocietySocietyEnhanced corporate value;
increased customer satisfaction

A century-old company and brandShareholders

Shareholders

Outcomes

Management and business platforms
The environment, society, and governance (ESG)39

Overall Summary While revenue and earnings declined for the first half of the fiscal year ending
February 28, 2021 due to the impact of COVID-19, results were in excess of plans Business results for the full fiscal year ending February 28, 2021 expected to come inline with plans While conditions throughout the bridal market are projected to remain harsh, aim forsuccess during the peak Christmas period in the Jewelry Business by capturing giftdemand an area of strength Robust trends in the first half in the Apparel Business; work to expand the opening ofstores and reduce overhead expenses in a bid to maintain robust trends in the second
half Plans to pay an annual cash dividend of ¥81 per share for the fiscal year ending
February 28, 2021, a tenth consecutive fiscal year of dividend increase; continue toemphasize consecutive increases in cash dividends in a bid to secure a cash dividend of¥100 per share in the future; in addition, undertake the repurchase of own shares for athird consecutive fiscal year While projecting dramatic changes in the structure of society and industry due to
COVID-19, put in place a policy of promoting increased productivity throughstructural reforms and establishing a firm foundation for the next stage of growthunder the sixth Medium-Term Management Plan
40

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.
President Office (Kozuka, Takahashi)
TEL+81-3-5719-3295
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.