YONDOSHI HOLDINGS INC.
April 13, 2020
(Securities Code: 8008, First Section, Tokyo Stock Exchange)

Summary of the Consolidated Financial Reportfor Fiscal 2019 (Ended February 29, 2020)
・ Looking at consolidated business results, the Jewelry Business struggled
throughout the fiscal year under review. As a result, revenue and earnings(operating income and ordinary income) declined compared with the previous
fiscal year.
・ In contrast, net income increased year on year. This largely reflected theabsence of the substantial tax expense posted in connection with the gain ontransfer of a related company’s shares during fiscal 2018.
・ The Jewelry Business reported declines in both revenue and earnings. TheApparel Business recorded gains in both revenue and earnings on the back ofrobust trends.
・ YONDOSHI HOLDINGS plans to pay an annual cash dividend of ¥80 per
share for the fiscal year under review. The Company will maintain its firm
commitment to continued dividend increases and plans to achieve a ninth
consecutive increase in the annual dividend.
・ While unable to determine consolidated earnings forecasts and dividends forfiscal 2020 (ending February 28, 2021) due to uncertainties surrounding theimpact of the new coronavirus pandemic, plans to continue following theexisting dividend policy.
YONDOSHI HOLDINGS INC. (“YONDOSHI HOLDINGS” or “the Company”;
Headquarters: Shinagawa-ku, Tokyo; Chairman and Representative Director, CEO:Saishi Kimura) announced today its business results for fiscal 2019, the fiscal year fromMarch 1, 2019 to February 29, 2020. Brief details are presented as follows.
1. Consolidated Business Results
Fiscal 2018
Net Sales
Operating Income
Ordinary Income
Profit Attributable toOwners of Parent(Millions of yen, %)Fiscal 2019
YoY

47,1184,984
6,804

44,9703,975
4,312(4.6)％(20.2)％(36.6)％

2,440

2,475

1.4％

1. Net income per share for the fiscal year under review was ¥112.18 (¥96.03 in the previous fiscal year).
2. The average number of issued shares for the fiscal year under review was 22,071,819 on a consolidatedbasis.
3. Operating income before the amortization of goodwill: FY2019 ¥4,472 million FY2018 ¥5,481 million
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. President Office
TEL: +81-3-5719-3295; FAX: +81-3-5719-3296; e-mail: ir-yondoshi@yondoshi.co.jp

Amid continued budget-consciousness arising from uncertainty surrounding the futureand other concerns including the effects of the consumption tax rate hike, businessconditions remained difficult in the retail industry as a result of the downturn in consumer
sentiment attributable to such factors as the impact of natural disasters. This uncertainty
is being exacerbated by the drop in inbound demand attributable to the new coronavirus
pandemic. Under these circumstances, the YONDOSHI HOLDINGS Group worked
diligently to enhance enterprise value while addressing priority issues by businessthroughout the fiscal year ended February 29, 2020, the second year of the fifth mediumterm management plan.
As a result, net sales for the fiscal year under review amounted to ¥44,970 million(down 4.6% YoY). From a profit perspective, operating income came to ¥3,975 million(down 20.2% YoY) and ordinary income was ¥4,312 million (down 36.6% YoY).
Meanwhile, profit attributable to owners of parent increased to ¥2,475 million (up1.4% YoY), due mainly to the absence of temporary tax expenses stemming from thetransfer of shares of an affiliated company recorded during the previous fiscal year.
Operating Results by Business Segment
Jewelry BusinessNet Sales:
Operating Income:¥26,987 million¥3,319 million(down 7.9% YoY)
(down 25.6% YoY)

In the F.D.C. Products Group, which is largely responsible for the YONDOSHIHOLDINGS Group’s Jewelry Business, results were firm during the first half of the fiscal
year under review. In contrast, overall net sales in this segment fell below plans. Thislargely reflected the downturn in consumer sentiment from October 2019 following thehike in Japan’s consumption tax rate and the impact of December 23 falling on a weekday
and two less Saturdays, Sundays, and holidays for the month compared with thecorresponding period of the previous year, which dampened the euphoria normallyassociated with the peak period of Christmas demand. Turning to selling, general andadministrative expenses, the F.D.C. Products Group also undertook an unplanned
investment in its IT system while incurring a temporary increase in asset retirement
obligation amortization costs.
Apparel Business
Net Sales:
Operating Income:¥17,983 million¥758 million(up 0.9% YoY)
(up 25.5% YoY)

In the Apparel Business, the AS’TY Group substantially improved its earning capacity
by strengthening measures with major clients, and enhancing its production management
capabilities. Results at retailer age Co., Ltd. were robust. In addition to expanding
openings of new locations for its everyday fashion brand PALETTE, these robust results
were mainly due to successful efforts to improve the gross margin by scaling backinventory of seasonal goods.

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. President Office
TEL: +81-3-5719-3295; FAX: +81-3-5719-3296; e-mail: ir-yondoshi@yondoshi.co.jp

2. Consolidated Earnings Forecasts for Fiscal 2020
Guided by its Fifth Medium-Term Management Plan, which covers the three-year period
to fiscal 2020, the fiscal year ending February 28, 2021, the YONDOSHI HOLDINGSGroup remains committed to restructuring its business in a bid to quickly build a robust
management and business platform and to become a century-old company and brand. Asfar as its Jewelry Business is concerned, the Group has taken steps to withdraw from theChinese market and to discontinue the two MASION JEWELL and Luria 4°C brands.
Turning to the Group’s Apparel Business, YONDOSHI HOLDINGS will halt operationsat its own facility run by Group company AS’TY VIETNAM INC. As indicated by theabove, the YONDOSHI HOLDINGS Group will enhance its ability to carry out its growthstrategy going forward by adopting a policy of selection and focus.
In addition to actively nurturing human resources, strengthening the competitivenessof products, and ascertaining market trends, every effort will also be made to practiceCSR-based management in a bid to establish YONDOSHI HOLDINGS as a highly
reliable and trustworthy group. Moreover, we will endeavor to enhance corporate value
by strengthening internal control functions, providing adequate shareholder returns, andmaking medium- to long-term investments linked to earnings growth.
In light of uncertainties surrounding the drop in consumer sentiment as well as thesuspension of operations and shorter business hours as a result of the new coronavirus
pandemic, YONDOSHI HOLDINGS is yet to determine consolidated earnings forecasts
for fiscal 2020 (ending February 28, 2021). Because it is logically difficult to accurately
calculate the effects of the situation at this stage.
3. Cash Dividends(Yen)
1Q-EndActual for
Fiscal 2018
Actual for
Fiscal 2019
Forecast for
Fiscal 2020

Annual Cash Dividend
2Q-End3Q-EndPeriod-End

Total

―

37.50

―

37.50

75.00

―

40.00

―

40.00

80.00

―

(TBD)

―

(TBD)

(TBD)

YONDOSHI HOLDINGS intends to pay a period-end cash dividend of ¥40.00 per share.
As a result, the annual cash dividend, which includes the interim cash dividend, will be¥80.00 per share, an increase of ¥5.00 per share for the fiscal year ended February 29,2020. This represents a ninth consecutive fiscal year of dividend increase.
While unable to determine dividends for fiscal 2020 (ending February 28, 2021) due
to uncertainties, the Company plans to continue following the existing dividend policy.
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. President Office
TEL: +81-3-5719-3295; FAX: +81-3-5719-3296; e-mail: ir-yondoshi@yondoshi.co.jp