Yondoshi : CONSOLIDATED FINANCIAL REPORT FISCAL 2022 Japanese GAAP (March 1, 2022 to February 28, 2023)

CONSOLIDATED FINANCIAL REPORT

FISCAL 2022（Japanese GAAP）

(March 1, 2022 to February 28, 2023)

April 14, 2023

YONDOSHI HOLDINGS INC. is listed on the Prime Market of the Tokyo Stock Exchange under the securities code number 8008.

Representative:	Hidetoshi Masuda, President and Representative Director
Inquiries:	Masahiko Nishimura, Managing Director, Managing Executive Officer responsible for Finan

Tel: [phone]

URL: https:// yondoshi.co.jp/

Annual General Meeting of Shareholders date (planned): May 25, 2023

Fiscal 2022 Securities Report filing date (planned): May 26, 2023

Dividend payment commencement date (planned): May 26, 2023

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 2022 (March 1, 2022 to February 28, 2023)

1. Consolidated Business Results

(% figures represent year-on-year increase or decrease)

	Net Sales		Operating Income	Ordinary Income	Profit Attributable to
		Owners of Parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY 2022	39,508	3.6	1,979	10.7	2,342	2.1	1,149	(22.9)
FY 2021	38,123	(3.4)	1,788	(35.4)	2,293	(28.2)	1,490	(8.1)

(Note) Comprehensive income: FY 2022: ¥(2,928) million (－%)	FY 2021: ¥5,112 million (129.2%)
		Net Income Per	Net Income Per			Ordinary Income	Ordinary Income
			ROE	to Operating
		Share	Share (Diluted)		to Total Assets
				Revenues
		Yen	Yen	%	%	%
	FY 2022	53.61		-	2.8	4.4	5.0
	FY 2021	69.56		-	3.6	4.2	4.7

(Reference) Operating income before the amortization of goodwill: FY 2022: ¥2,476 million FY 2021: ¥2,284 million YONDOSHI HOLDINGS has positioned operating income before the amortization of goodwill as an important management indicator.

Note: The Company applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from the beginning of the subject fiscal year. Figures for the fiscal year ended February 28, 2023, are after application of this accounting standard.

1. Consolidated Financial Position

	Total Assets	Net Assets	Net Assets to Total	Net Assets per Share of
	Assets	Common Stock
	Millions of yen	Millions of yen	%	Yen
As of February 28, 2023	50,211	38,214	76.0	1,780.71
As of February 28, 2022	56,884	42,917	75.4	2,001.22

(Reference) Shareholders' equity: As of February 28, 2023: ¥38,183 million As of February 28, 2022: ¥42,893 million Note: The Company applied "Accounting Standard for Revenue Recognition" (ASBJ Statement No. 29, March 31, 2020) from

the beginning of the subject fiscal year. Figures for the fiscal year ended February 28, 2023, are after application of this accounting standard.

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1. Consolidated Cash Flows

				Cash and Cash
	Operating Activities	Investing Activities	Financing Activities	Equivalents at the End
				of the Period
	Millions of yen	Millions of yen	Millions of yen	Millions of yen
FY 2022	3,103	(2,371)	(1,834)	1,799
FY 2021	1,871	106	(1,816)	2,900

2. Dividends

	Cash Dividends per Share of Common Stock			Cash	Dividend		Cash Dividends
								Dividends	Payout Ratio		to Net Assets
	End of 1Q	End of 2Q	End of 3Q	End of 4Q		Annual
			Paid (Annual)	(Consolidated)		(Consolidated)
	Yen	Yen	Yen	Yen		Yen		Millions of yen	%	%
FY 2021	-	41.50	-	41.50		83.00	1,784	119.3	4.3
FY 2022	-	41.50	-	41.50		83.00	1,787	154.8	4.4
FY 2023(planned)	-	41.50	-	41.50		83.00			136.9

3. Forecast of Consolidated Results for FY 2023 (March 1, 2023 to February 29, 2024)

(% 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	Operating Income	Ordinary Income	Profit attributable to	Net Income per
	owners of parent	Share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Interim	19,000	2.6	800	24.0	1,000	21.6	550	7.1	25.65
Full Fiscal	40,000	1.2	2,100	6.1	2,500	6.7	1,300	13.1	60.63
year

(Reference) Forecast EPS before the amortization of goodwill for the full FY 2023 is ¥83.79.

Notes

1. Changes in important subsidiaries during the period (changes in specified subsidiaries in accordance with changes in the scope of consolidation): No
2. Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
3. 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: No
   4. Retrospective restatement: No
4. 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, 2023:	24,331,356 shares	As of February 28, 2022:	24,331,356 shares
2. Number of treasury stock
As of February 28, 2023:	2,888,198 shares	As of February 28, 2022:	2,897,922 shares

3. Average number of shares for the year

FY2022: 21,441,448 shares

FY2021: 21,429,623 shares

Notes:

1. The number of recorded treasury stock includes 97,170 of the Company' shares held by the Shares Grant Trust for Officers as of the end of the subject consolidated 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.

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(Reference) Overview of Non-Consolidated Performance

1. Non-Consolidated Performance for FY 2022 (March 1, 2022 to February 28, 2023)

1. Non-ConsolidatedBusiness Results

(% figures represent year-on-year increase or decrease)

	Operating Revenues	Operating Income	Ordinary Income	Profit attributable to
	owners of parent
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%
FY 2022	1,519	(36.1)	1,069	(45.4)	1,139	(43.2)	1,047	(45.6)
FY 2021	2,376	(2.3)	1,958	(0.1)	2,005	(2.1)	1,924	(3.1)
	Net Income Per		Net Income Per
	Share		Share (Diluted)
	Yen			Yen
FY 2022	48.86			-
FY 2021	89.80			-

1. Non-ConsolidatedFinancial Position

		Total Assets	Net Assets		Net Assets to Total	Net Assets per Share of
			Assets	Common Stock
		Millions of yen	Millions of yen	%	Yen
	As of February 28, 2023	38,368	25,708	66.9	1,197.50
	As of February 28, 2022	38,000	26,511	69.7	1,235.77
(Reference) Shareholders' equity: As of February 28, 2023: ¥25,678 million	As of February 28, 2022: ¥26,486 million

• The financial statement summary is not subject to auditing by certified public accountants or audit firms.
• Explanation concerning the Proper Use of Operating Results Forecasts and Other Relevant Specific Items
• 1. The forecasts of operating results and other items concerning the future contained in this document are based on 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.
  2. The Company plans to hold a financial results briefing on April 14, 2023 (Friday) for institutional investors and analysts. Presentation materials used that day will be posted to the Company's website promptly after the briefing.

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Contents
1. Overview of Business Results	5
(1)	Overview of Business Results for the Fiscal Year Ended February 28, 2022	5
(2)	Overview of Financial Condition as of February 28, 2022	5
(3)	Overview of Cash Flows for the Fiscal Year Ended February 28, 2022	6
(4)	Outlook	6
(5)	Policy on the Appropriation of Profits, Cash Dividends for Fiscal 2021 and Fiscal 2022	6
2. Basic Stance on Selection of Accounting Standards	7
3. Consolidated Financial Statements and Major Notes	8
(1)	Consolidated Balance Sheets	8
(2)	Consolidated Statements of Income and Consolidated Statements of Comprehensive Income	10
	(Consolidated Statements of Income)	10
	(Consolidated Statements of Comprehensive Income)	11
(3)	Consolidated Statements of Changes in Net Assets	12
(4)	Consolidated Statements of Cash Flows	14
(5)	Notes to Consolidated Financial Statements	16
	(Notes Regarding Going Concern Assumptions)	16
	(Changes in Accounting Policies)	16
	(Additional Information)	17
	(Segment Information)	18
	(Matters Related to Revenue Recognition)	21
	(Per Share Information)	22
	(Important Subsequent Events)	23

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1. Overview of Business Results

(1) Overview of Business Results for the Fiscal Year Ended February 28, 2023

In fiscal 2022, the fiscal year ended February 28, 2023, the Japanese economy showed signs of a modest recovery as economic activity returned to normal with the easing of restrictions implemented in response to the COVID- 19 pandemic. Meanwhile, sharp fluctuations in foreign currency exchange rates and the surge in resource and energy prices had a significant impact on corporate activity.

In the retail sector, despite indications of a partial recovery in consumption, the outlook remained uncertain owing to the growing number of people cutting back on their spending as a result of successive price hikes.

Under these circumstances, the YONDOSHI HOLDINGS Group, in response to changes in the business environment, leveraged the strengths of the corporate group to the fullest extent in order to provide products and services that exceed customer expectations, with the aim of further growth. In addition, the Company practiced sustainable management to establish a highly trusted corporate group, and worked to enhance enterprise value by strengthening internal controls, providing shareholder returns, and making medium- to long-term investments linked to earnings growth.

As a result, for the subject fiscal year under review, net sales amounted to ¥39,508 million (up 3.6% YoY), with operating income of ¥1,979 million (up 10.7% YoY), ordinary income of ¥2,342 million (up 2.1% YoY), and profit attributable to owners of parent of ¥1,149 million (down 22.9% YoY). Operating income before the amortization of goodwill, which the Company considers to be an important management indicator, amounted to ¥2,476 million (up 8.4% YoY).

Operating results by business segment were as follows.

Jewelry Business

The F.D.C. Products Group, which is largely responsible for the YONDOSHI HOLDINGS Group's Jewelry Business, reported firm trends in fashion jewelry on the back of successful measures to expand its female customer base and cultivate new customers. Sales in the e-commerce business also expanded steadily following the renewal of its website. Meanwhile, the F.D.C. Products Group undertook steps to increase efficiency through the integration of stores while also making large-scale investments in urban stores in the bridal jewelry business, which struggled under difficult conditions.

As a result, net sales in the Jewelry Business amounted to ¥18,587 million (up 0.5% YoY) with operating income of ¥1,356 million (up 13.3% YoY).

Apparel Business

Retailer age Co., Ltd., which operates the everyday fashion brand PALETTE, reported a year-on-year increase in existing store sales of 2.1%. This represents a fourth consecutive fiscal year of growth. In addition, efforts to expand the Group's scale in the Apparel Business progressed steadily with the opening of 10 new stores, including four stores in the Kanto region for the first time.

The AS'TY Group recorded an expansion in sales. Despite confronting a harsh operating environment impacted in part by the weak yen and higher materials costs, this was mainly due to successful efforts to take advantage of the foreign production infrastructure to strengthen business with mainstay trading partners.

As a result, net sales in the Apparel Business segment amounted to ¥20,921 million (up 6.6% YoY), with operating income of ¥942 million (up 6.0% YoY).

1. Overview of Financial Condition as of February 28, 2023 (Current Assets)
   Current assets as of the end of the fiscal year under review stood at ¥13,699 million, down ¥1,200 million compared with the end of the previous fiscal year. Major movements included a decrease in cash and deposits of ¥1,096 million.

(Noncurrent Assets)

Noncurrent assets came to ¥36,512 million as of February 28, 2023, a decrease of ¥5,472 million compared with the previous fiscal year-end. This decrease was largely due to downturns in investment securities of ¥4,629 million and goodwill of ¥496 million.

(Current Liabilities)

Current liabilities stood at ¥5,872 million as of the end of the fiscal year under review, up ¥425 million compared with the end of the previous year. This upswing largely reflected the increase in asset retirement obligations of

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