YONDOSHI HOLDINGS INC.

October 8, 2021
(Securities Code: 8008, First Section, Tokyo Stock Exchange)
Summary of the Consolidated Financial Reportfor the First Half of Fiscal 2021 (Ending February 28, 2022)
・ Consolidated operating results for the first half of the fiscal year ending
February 28, 2022 were impacted by such factors as the prolonged
declarations of a state of emergency. Under these circumstances, net sales
were essentially unchanged while operating income fell below the level
recorded in the corresponding period of the previous fiscal year.
・ In the Jewelry Business, the YONDOSHI HOLDINGS Group proactively
undertook investments aimed at enhancing brand value.
・ In the Apparel Business, various steps were taken including the opening of six
new PALETTE stores. As a result, net sales increased while operating income
trends exceeded plans.
・ The YONDOSHI HOLDINGS Group is projecting an increase in bothrevenue and earnings for the full fiscal year. This largely reflects theimplementation of various measures aimed at improving the operating
environment and addressing the peak Christmas period.
・ As a part of efforts to return profits to shareholders, YONDOSHIHOLDINGS has adopted the dividend on equity (DOE) ratio as an indicator
to ensure the stable payment of dividends. Plans are in place to pay an annual
dividend of ¥83 per common share, up ¥2 per common share. This represents
an eleventh consecutive fiscal year of dividend growth.
YONDOSHI HOLDINGS INC. (“YONDOSHI HOLDINGS” or “the Company”;
Headquarters: Shinagawa-ku, Tokyo; Chairman and Representative Director, CEO:
Saishi Kimura) announced today its consolidated operating results for the first half periodof fiscal 2021 (March 1, 2021, to August 31, 2021), the fiscal year ending February 28,2022. A summary of these results is presented as follows.
1. Consolidated Business Results(Millions of yen, %)Net Sales
Operating Income

Fiscal 2020 1H
17,980
1,043
1,283

Fiscal 2021 1H
17,769396
715

YoY(1.2)％(62.0)％(44.3)％

Ordinary Income
Profit Attributable to603
280(53.5)％
Owners of Parent
1. Net income per share for the subject period was ¥13.08 (¥27.79 for the corresponding period of theprevious fiscal year).
2. The average number of issued shares for the period (consolidated basis) was 21,425,904 shares.
3. Operating income before the amortization of goodwill was ¥645 million (¥1,291 million in thecorresponding period of previous fiscal year).
Head Office:Establishment:
Paid-in Capital:
Business Activities:
URL:
Inquiries:

2-19-10 Kami-Osaki, Shinagawa-ku, Tokyo
May 1950¥2,486.52 million
Brand business focusing mainly on jewelry; planning, manufacture and wholesale mainly ofapparel and bags; and retail business
https://yondoshi.co.jp/eng/
YONDOSHI HOLDINGS INC. Finance Department
TEL: +81-3-5719-3295; FAX: +81-3-5719-3296; e-mail: ir-yondoshi@yondoshi.co.jp

In the retail industry, in addition to the impact of the government’s call for people toremain at home, as well as business suspensions and shortened operating hours at stores,
the worsening employment and income environments led to a continued cooling off inconsumer sentiment. Taking also into account sluggish consumer spending, conditions
surrounding the future remain uncertain. Under these circumstances, the YONDOSHIHOLDINGS Group has been working on the priority issues for each business with theaim of increasing corporate value in fiscal 20201 the first year of its sixth medium-term
management plan.
As a result, net sales for the first half of the fiscal year under review amounted to¥17,769 million (down 1.2% from the corresponding period of the previous fiscal year),
operating income totaled ¥396 million (down 62.0%), ordinary income was ¥715 million(down 44.3%), and profit attributable to owners of parent came to ¥280 million (down53.5%).
Jewelry Business
Net Sales:
Operating Income:¥7,894 million¥60 million(down 7.5% YoY)
(down 91.2% YoY)

The F.D.C. Products Group, which is largely responsible for the YONDOSHIHOLDINGS Group’s Jewelry Business, proactively undertook investments aimed atenhancing brand value despite the harsh operating environment in response to theprolonged declarations of a state of emergency amid the substantial effects of the spreadof COVID-19. In addition, operating income decreased significantly due to a reactionary
increase in personnel expenses, a portion of which was recorded as an extraordinary loss
in the corresponding period of the previous fiscal year.
Apparel Business
Net Sales:
Operating Income:¥9,875 million¥547 million(up 4.5% YoY)
(down 3.6% YoY)

Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, achieved
record-high net sales and operating income. In addition to the opening of six new stores,
which exceeded initial plans, these record-high results were also attributable to robust
trends at existing stores.
The AS’TY Group continued to work on ensuring stable operations at its overseas
production bases and the strengthening of its product planning capabilities.
2. Forecasts for Full-Year Period of Fiscal 2021
(Millions of yen, %)Net Sales
Operating Income

Fiscal 2020
(Actual)39,4492,767
3,195

Fiscal 2021
(Forecast)
40,500
2,800
3,300

YoY
+2.7%
+1.2%
+3.3%

Ordinary Income
Profit attributable to1,622
2,200+35.6%
owners of parent
1. Forecast net income per share for FY 2021: ¥102.68
2. Average number of issued shares during FY 2021 (consolidated basis): 21,425,904 shares
3. EPS before the amortization of goodwill: ¥125.85
Head Office:Establishment:
Paid-in Capital:
Business Activities:
URL:
Inquiries:

2-19-10 Kami-Osaki, Shinagawa-ku, TokyoMay 1950
¥2,486.52 million
Brand business focusing mainly on jewelry; planning, manufacture and wholesale mainly ofapparel and bags; and retail business
https://yondoshi.co.jp/eng/
YONDOSHI HOLDINGS INC. Finance Department
TEL: +81-3-5719-3295; FAX: +81-3-5719-3296; e-mail: ir-yondoshi@yondoshi.co.jp

The consolidated earnings forecast for the fiscal year ending February 2022 remains
unchanged from the figures announced on July 7, 2021.
Note: Forecasts are based on available information as of the disclosure date for this material.
Actual results may vary from forecast figures as a result of economic conditions or avariety of other factors.

3. Cash Dividends for Fiscal 2021
(Yen)

Annual Cash Dividend
1Q-EndActual for
Fiscal 2020
Actual for
Fiscal 2021
Forecast for
Fiscal 2021

2Q-End

―

40.50

―

41.50

3Q-EndPeriod-End

Total―

40.50

81.00

―

41.50

83.00

YONDOSHI HOLDINGS recognizes that providing returns to shareholders is an
important management issue. The Company has set as its basic policy for profit sharing
the raising of the level of shareholder returns through such means as a stable andcontinuous cash dividend payment, and flexible share buybacks. The Company also
maintains an adherence to continuous dividend increases, aiming to reach 100 yen per
share in the future.
As a part of efforts to return profits to shareholders, YONDOSHI HOLDINGS hasadopted the DOE ratio as an indicator to ensure the stable payment of dividends. The
Group has identified a DOE ratio of 4% or more as a new target.
Turning to dividends for the fiscal year ending February 28, 2022, YONDOSHIHOLDINGS plans to pay an interim and fiscal year-end cash dividend of ¥41.50 per
common share for a full fiscal year cash dividend of ¥83 per common share, up ¥2 percommon share and an eleventh consecutive fiscal year of cash dividend growth.

END

Head Office:Establishment:
Paid-in Capital:
Business Activities:
URL:
Inquiries:

2-19-10 Kami-Osaki, Shinagawa-ku, TokyoMay 1950
¥2,486.52 million
Brand business focusing mainly on jewelry; planning, manufacture and wholesale mainly ofapparel and bags; and retail business
https://yondoshi.co.jp/eng/
YONDOSHI HOLDINGS INC. Finance Department
TEL: +81-3-5719-3295; FAX: +81-3-5719-3296; e-mail: ir-yondoshi@yondoshi.co.jp