Yondoshi : CONSOLIDATED FINANCIAL REPORT（Japanese GAAP） THIRD QUARTER OF THE FISCAL YEAR ENDING FEBRUARY 28, 2023 (March 1, 2022 to November 30, 2022)

CONSOLIDATED FINANCIAL REPORT（Japanese GAAP）

NINE-MONTH PERIOD OF THE FISCAL YEAR ENDING

FEBRUARY 28, 2023

(March 1, 2022 to November 30, 2022)

January 6, 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 Finance
	Tel: [phone]

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

Quarterly Securities Report filing date (planned): January 12, 2023

Supplemental materials prepared for quarterly financial results: No

Holding of quarterly financial results meeting: No

Dividend payment commencement date (planned): -

(Millions of yen rounded down)

1. Consolidated Operating Results for the Nine-Month Period of Fiscal 2022 (March 1, 2022 to November 30, 2022)

1. Consolidated Operating Results (Cumulative)

(Percentage figures are the increase / (decrease) for the corresponding period of the previous fiscal year.)

			Net sales		Operating Income	Ordinary Income	Profit attributable to
				owners of parent
	FY2022		Millions of yen	％	Millions of yen	％	Millions of yen	％	Millions of yen	％
		28,402	3.7	1,044	40.1	1,328	13.6	739	23.2
	Nine-Month Period
	FY2021		27,378	(3.3)	745	(60.2)	1,169	(47.1)	600	(49.5)
	Nine-Month Period
	Note: Comprehensive income	FY2022 Nine-Month Period: (3,015) million yen (－%)
		FY2021 Nine-Month Period: 769 million yen (－64.7%)
			Net Income	Net Income per
			per Share		Share after Dilution
	FY2022			Yen		Yen
			34.51		-
	Nine-Month Period
	FY2021			28.04		-
	Nine-Month Period
	(Reference) Operating income	before the amortization of	goodwill:
	FY 2022 Nine-Month Period: ¥1,416 million FY 2021 Nine-Month Period: ¥1,118 million
	The Company considers operating income before the amortization of goodwill to be 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 first quarter of the subject fiscal year. Figures for the third quarter of the fiscal year ending 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
	Assets
	Millions of yen	Millions of yen	%	Yen
November 30, 2022	54,544	38,036	69.7	1,772.46
February 28, 2022	56,884	42,917	75.4	2,001.22

(Reference)Shareholders' equity: November 30, 2022: 38,007 million yen

February 28, 2022: 42,893 million yen

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

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2.	Dividends
				Dividends per Share
(Record Date)	End of 1Q	End of 2Q	End of 3Q	Year-end	Annual
		Yen	Yen	Yen	Yen	Yen
Fiscal 2021	-	41.50	-	41.50	83.00
Fiscal 2022	-	41.50	-
Fiscal 2022				41.50	83.00
(Forecast)
Note: Revision to the most recently announced cash dividend forecast: No

3. Forecasts of Consolidated Operating Results for the Fiscal Year Ending February 28, 2023 (March 1, 2022 to February 28, 2023)

			(% figures for the full fiscal	year represent year-on-year increase or decrease)
	Net Sales		Operating Income	Ordinary Income	Profit attributable to	Net Income
		owners of parent	per Share
	Millions of yen	%	Millions of yen	%	Millions of yen	%	Millions of yen	%	Yen
Fiscal year
ending	40,000	4.9	2,000	11.9	2,350	2.4	1,100	(26.2)	51.30
February 28,
2023
Note: Revision to the most recently announced operating results forecast: Yes
(Reference) Forecast EPS before the amortization of goodwill for the full FY 2022 is ¥74.46.

Notes

1. Changes in Important Subsidiaries during the Period:
   (Changes in specified subsidiaries that caused changes in the scope of consolidation): No
2. Application of Special Accounting Practices in the Preparation of the Quarterly Consolidated Financial Statements: Yes
3. Changes in Accounting Policies, Changes in Accounting Estimates, and Restatements
4. 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
5. Number of Shares Issued and Outstanding (Common Stock)

1. Total number of shares issued and outstanding (including treasury stock) as of the period-end:

November 30, 2022: 24,331,356 shares

Feb. 28, 2022: 24,331,356 shares

2. Total number of treasury stock as of the period-end:

November 30, 2022: 2,888,198 shares

Feb. 28, 2022: 2,897,922 shares

3. Average number of shares for the period (Cumulative total for the quarterly consolidated period)

FY2022 Nine-MonthPeriod: 21,440,888 shares FY2021 Nine-MonthPeriod: 21,428,376 shares

Note: 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 third quarter of the fiscal year.

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 "1. Qualitative Information on Business and Financial Results (3) Explanation of Consolidated Results Forecasts and Other Future Predictions" on page 4.

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Contents
1. Qualitative Information on Business and Financial Results	4
(1)	Explanation of Business Results	4
(2)	Explanation of Financial Condition	4
(3)	Explanation of Consolidated Results Forecasts and Other Future Predictions	4
2. Consolidated Quarterly Financial Statements	5
(1)	Consolidated Quarterly Balance Sheets	5
(2)	Consolidated Quarterly Statements of Income and Consolidated Quarterly Statements of	7
	Comprehensive Income
	Consolidated Quarterly Statements of Income Third Quarter Cumulative	7
	Consolidated Quarterly Statements of Comprehensive Income Third Quarter Cumulative	8
(3)	Notes to Consolidated Quarterly Financial Statements	9
	(Notes Regarding Going Concern Assumptions)	9
	(Notes Regarding Substantial Changes in Shareholders' Equity)	9
	(Changes in Accounting Policies)	9
	(Adoption of Accounting Standard for Fair Value Measurement)	10
	(Application of Special Accounting Treatment in the Preparation of the Consolidated	10
	Financial Statements)
	(Additional Information)	10
	(Segment Information)	12
	(Matters Related to Revenue Recognition)	13
	(Important Subsequent Events)	13

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1. Qualitative Information on Business and Financial Results

(1) Explanation of Business Results

During the third quarter cumulative period (March 1, 2022, to November 30, 2022) of fiscal 2022 (ending February 28, 2023), the Japanese economy showed signs of gradual recovery as economic activity returned to normal with the easing of restrictions implemented in response to the COVID-19 pandemic. Meanwhile, rising resource and energy prices, along with depreciation in the value of the yen, continue to have an impact on corporate activity.

In the retail sector, although foot traffic has recovered as people have more opportunities to go out, the outlook remains unclear, as the recent series of price hikes has raised concerns over a greater tendency toward economizing.

Under such circumstances, YONDOSHI HOLDINGS Group, in response to the changes in the business environment, is leveraging 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 is practicing sustainable management to establish a highly trusted corporate group, and is working 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 third quarter cumulative period, net sales amounted to ¥28,402 million (up 3.7% from the same period of the previous fiscal year), with operating income of ¥1,044 million (up 40.1%), ordinary income of ¥1,328 million (up 13.6%), and profit attributable to owners of parent of ¥739 million (up 23.2%). Operating income before the amortization of goodwill, which the Company considers to be an important management indicator, amounted to ¥1,416 million (up 26.7%).

Operating results by business segment were as follows.

Jewelry Business

The F.D.C. Products Group, which operates the jewelry business, recorded positive trends for fashion jewelry such as earrings and bracelets, on successful measures to increase the number of female customers. Sales in the e-commerce business also expanded steadily following the website renewal.

As a result, net sales in the Jewelry Business amounted to ¥12,475 million (up 2.4% from the same period of the previous fiscal year), with operating income of ¥537 million (up 223.3%).

Of note, the Company is taking decisive action for structural reform in the Jewelry Business through a program of selection and concentration. Under this plan, bridal jewelry store locations will be consolidated, with major renovations conducted to establish urban flagship stores.

Apparel Business

Retailer age Co., Ltd., operator of the everyday fashion brand PALETTE, recorded an increase in sales on the opening of 10 new stores, including four locations in the Kanto region for the first time.

The AS'TY Group, despite the negative impacts from the weak yen and higher material costs, recorded an expansion in sales on successful efforts to take advantage of the recovery in demand and the production environment to strengthen business with mainstay trading partners.

As a result, net sales in the Apparel Business segment amounted to ¥15,927 million (up 4.8% from the same period of the previous fiscal year), with operating income of ¥816 million (down 6.4%).

(2) Explanation of Financial Condition

Total assets at the end of the subject third quarter cumulative period (November 30, 2022) amounted to ¥54,544 million, a decrease of ¥2,339 million from the end of the previous fiscal year (February 28, 2022). This was due mainly to a decrease of ¥3,918 million in investment securities, against an increase of ¥1,049 million in notes and accounts receivable-trade. Total liabilities amounted to ¥16,508 million, an increase of ¥2,542 million from the end of the previous fiscal year. This was due mainly to an increase of ¥2,400 million in short-term loans payable. Total net assets at the end of the subject period amounted to ¥38,036 million, a decrease of ¥4,881 million from the end of the previous fiscal year. This was due mainly to a decrease of ¥3,828 million in valuation difference on available-for-sale securities.

(3) Explanation of Consolidated Results Forecasts and Other Future Predictions

For consolidated results forecasts for fiscal 2022 (ending February 28, 2023), see "Notice of Revision to Fiscal 2022 Forecasts" released today (January 6, 2023).

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2. Consolidated Quarterly Financial Statements

1. Consolidated Quarterly Balance Sheets

			(Millions of yen)
		End of the Fiscal Year Ended	End of the Third Quarter of
		February 28, 2022	the Fiscal Year Ending
		(As of February 28, 2022)	February 28, 2023
			(As of November 30, 2022)
ASSETS
Current assets:
Cash and deposits	2,900	2,270
Notes and accounts receivable ― trade	2,445	3,494
Merchandise and finished goods	7,713	9,169
Work in process	293	254
Raw materials and supplies	736	544
Other current assets	813	800
Allowance for doubtful accounts	(4)	(5)
Total current assets	14,899	16,529
Noncurrent assets:
Property, plant and equipment:
Buildings and structures, net	4,630	4,665
Land	5,839	5,839
Other, net	429	476
Total property, plant and equipment	10,899	10,981
Intangible assets:
Goodwill	2,234	1,861
Other intangible assets	289	363
Total intangible assets	2,523	2,224
Investments and other assets:
Investment securities	24,037	20,119
Net defined benefit asset	492	519
Other	4,083	4,219
Allowance for doubtful accounts	(51)	(47)
Total investments and other assets	28,562	24,809
Total noncurrent assets	41,985	38,015
Total assets		56,884	54,544

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