Summary of Consolidated Financial Results (Japanese Accounting Standards)
for the First Quarter of the Fiscal Year Ending December 31, 2018
Company name:
AOI TYO Holdings Inc.
Stock Exchange:
Tokyo Stock Exchange
Code:3975
URL:
http://aoityo.com/en/
Representatives:
Yasuhito Nakae, Representative Director
Inquiries:
Satoshi Yuzurihara, Executive Director
Scheduled date of submission of quarterly report:
Scheduled date of commencement of dividend payment:
Supplementary documents for quarterly results:
Quarterly results briefing:

May 15, 2019

Tel: +81-3-3779-8415
May 15, 2019
―YesNo(Rounded down to the nearest million yen)

1. Consolidated Financial Results for the First Quarter (from January 1, 2019 to March 31, 2019)(1) Consolidated operating results

Net sales

Operating income

Million yen

Q1 FY2019
Q1 FY2018%

15,47015,521(Note) Comprehensive income

-0.3
-16.0

Million yen

%

633
1,092

-42.0
-40.0

Q1 FY2019: 356 million yen (-58.8%)
Net income per share

Million yen

%

564
1,031

Million yen

-45.3
-41.9

263
842%

-68.7
-17.0

Q1 FY2018: 866 million yen (-15.0%)

Diluted net income
per shareYen

Q1 FY2019
Q1 FY2018(The percentages are year-on-year changes.)
Profit attributable toOrdinary income
owners of parent

Yen

11.20
35.38

11.15
34.94

(2) Consolidated financial position
Total assets

Net assets

Million yen

Q1 FY2019
FY201856,84555,631(For reference) Shareholders’ equity

Equity ratio

Million yen%

25,51525,679Q1 FY2019: 24,967 million yen

43.9
45.1
FY2018 25,114 million yen

2. Dividends
Dividends per share
End of Q1

End of Q2

Yen

End of Q3

Yen

FY2018‒8.00
FY2019－FY2019 (forecast)
8.00(Note) Revisions to dividends forecast published most recently: NoYear end

Yen

AnnualYenYen

‒

22.00

30.00

‒

12.00

20.00

3. Consolidated Financial Forecast for FY2019 (January 1, 2019 to December 31, 2019)

Net salesFirst half
Full year

Million yen

32,00065,000Operating income%3.70.3

Million yen

1,100
2,600%-37.0-24.3(Note) Revisions to earnings forecast published most recently: No(The percentages are year-on-year changes.)
Profit attributable to Net income perOrdinary income
owners of parentshare
Million yen

1,000
2,500%-40.5-24.8

Million yen500
1,300%

-57.3
-33.4

Yen

21.13
54.93

* Notes(1) Important changes in subsidiaries for the third quarter under review (Changes is specified subsidiaries resulting inchange in scope of consolidation):No

New: ― companies

Excluded: ― companies(2) Application of accounting treatment specific to the preparation of quarterly consolidated financial statements:
Not applicable(3) Changes in accounting policies, and changes or restatements of accounting estimates(i)
Changes in accounting policies due to revisions to accounting standards etc. :Not applicable(ii)Changes in accounting policies other than (i):Not applicable(iii)

Changes in accounting estimates::

Not applicable(iv)

Restatements of accounting estimates::

Not applicable(4) Number of issued shares (common stock)(i)

Number of issued shares (including treasury stock
Q1 FY2019(ii)

FY201824,566,447 shares

FY20181,013,157 shares

Number of treasury stock at end of period
Q1 FY2019(iii)

24,566,447 shares
1,013,131 shares

Average number of issued shares

Q1 FY2019
23,553,340 shares
Q1 FY201823,826,837 shares(Note) The number of treasury stock includes the 418,900 shares that Trust & Custody Services Bank, Ltd. (trustaccount E) holds as trust property related to a Board Benefit Trust system.
*This summary of quarterly financial results is not included in the scope of the quarterly review.
*Explanation on the proper use of results forecasts and other notes- The forward-looking statements, including results forecasts, in this document are based on information that AOITYO Holdings has obtained at the time of publication and certain assumptions that it believes to be reasonable.
Actual results may differ materially from the forecasts due to a variety of reasons. For the assumptions of results
forecasts and notes on the use of results forecasts, please refer to 1. Qualitative Information on Results in theFirst Quarter, (3) Description of Information on Outlook on page two of the Accompanying Materials..

Attachments
1. Qualitative Information on Results in the First Quarter

2(1) Description of Results of Operations

2(2) Description of Financial Position

2(3) Description of Information on Outlook

2

2. Quarterly Consolidated Financial Statements and Major Notes

3(1) Quarterly consolidated balance sheets

3(2) Quarterly consolidated statements of income and statements of comprehensive income

5(3) Notes to Quarterly Consolidated Financial Statements

7(Notes regarding assumption of going concern)

7(Notes in the event of significant changes in shareholders’ equity)

7(Segment Information)

7(Supplementary Information)

7―1―

1. Qualitative Information on Results in the First Quarter(1) Discussion of operating results
Any forward-looking statements below are based on AOI TYO Group judgments as of the end of the current consolidated fiscal year.
The Japanese economy continued to recover moderately through the first three months of the current consolidated fiscal year, showing
signs of improved employment and personal income. At the same time, concerns remain about trade issues and the potential negative
impact of such risks on the global economy, while business sentiment appears to be cautious, particularly in the manufacturing industry.
Operating in this environment, AOI TYO Holdings recorded net sales essentially level with the same period in the prior fiscal year.
This result was mainly due to continued strict order acceptance for the benefit of work-style reform and a decreasing trend in print
sales (see note).
In contrast, profits were more than 50% ahead of our first half earnings forecast, despite operating profit underperforming the year-ago
quarter.
This result was due to several negative factors, including our adoption of work-style reform, cost increases accompanying new systems
implementation, and lower print sales, which is a high-margin business for the company.
Our order situation advanced steadily, with order backlog up 6.2% year on year to 15,912 million yen as of the end of the consolidated
first quarter.
As a result, the AOI TYO Group recorded net sales of ¥15,470 million for the consolidated first quarter, representing a 0.3% decrease
compared to year-ago quarter. Operating profit amounted to ¥633 million (42.0% decrease), while ordinary profit and profit
attributable to owners of parent amounted to ¥564 million and ¥263 million, representing decreases of 45.3% and 68.7%, respectively.
Selling, general and administrative expenses included ¥74 million in amortization of goodwill associated with M&A activity.
(Note) Historically, television commercial content had been copied to media (“printed”) and delivered to each broadcast station. TheAOI TYO Group recognizes the sales and profits of this activity in our accounting records. As of October 2017, this content
can be delivered via online data transmission (“printless” format), leading to a decline in related sales and profits.
As of the first quarter of the current fiscal year, the AOI TYO Group initiated disclosure as a single segment. Accordingly, we do notprovide data by individual segment herein.

(2) Discussion of financial position
Total assets as of the end of the consolidated first quarter amounted to ¥56,845 million, a ¥1,213 million increase compared to the endof the prior consolidated fiscal year. This increase was mainly due to increases in electronically recorded monetary claims and work inprocess of 982 million yen and 727 million yen, respectively, compared to a decrease in notes and accounts receivable - trade of 817
million yen.
Liabilities increased by 1,378 million yen compared with the end of the prior fiscal year to 31,330 million yen. This increase wasmainly due to an increase in short-term loans payable of 2,754 million yen, which more than offset decreases in income taxes payable
and accounts payable - trade of 825 million yen and 280 million yen, respectively.
Net assets amounted to ¥25,515 million, a decrease of ¥164 million compared to the end of the prior consolidated fiscal year. Retained
earnings rose ¥263 million due to profit attributable to owners of parent. At the same time, the AOI TYO Group paid ¥527 million in
dividend payments.

(3) Discussion of consolidated results forecasts
There are no changes to the consolidated results forecast for the first half and full year of the fiscal year ending December 31, 2018
announced on February 19, 2019.

―2―2. Quarterly Consolidated Financial Statements and Major Notes(1) Quarterly consolidated balance sheets(Unit: thousand yen)
FY 2018(December 31, 2018)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims - operating
Merchandise and finished goods
Work in process
OtherAllowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Land
Other
Total property, plant and equipment
Intangible assets
Software
Goodwill
OtherTotal intangible assets
Investments and other assets
Investment securities
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―3―

Q1 FY2019(March 31, 2019)

9,836,071
16,731,160
4,273,694
7,544
4,256,243
876,667-43,40735,937,974

9,688,401
15,913,873
5,256,023
7,444
4,983,795
1,140,835-41,453
36,948,920

3,615,121
3,619,949
7,235,071

3,615,400
3,647,754
7,263,154

1,590,986
4,117,710
64,172
5,772,869

1,513,885
4,046,597
56,1725,616,655

3,147,176
1,619,387
2,025,326-106,495
6,685,395
19,693,336
55,631,310

3,639,105
1,620,127
1,864,160-106,983
7,016,410
19,896,221
56,845,141

(Unit: thousand yen)
FY 2018(December 31, 2018)

Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Advances received
Income taxes payable
Provision for bonuses
OtherTotal current liabilities
Non-current liabilities
Long-term loans payable
Long-term deposits received
Provision for directors' retirement benefits
Provision for management board incentive plan trust
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive incomeValuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets―4―

Q1 FY2019(March 31, 2019)

8,126,930
5,777,154
2,159,836
1,136,482
1,055,553
115,779
1,742,279
20,114,017

7,846,649
8,531,200
2,054,015
1,186,632
229,819
136,026
1,970,737
21,955,079

4,549,727
3,501,199
253,770
197,115
280,118
509,156546,278
9,837,367
29,951,385

4,063,811
3,501,199
255,724
213,030
279,529
531,161
530,473
9,374,930
31,330,010

5,000,000
12,106,819
9,055,601-1,190,097
24,972,324

5,000,000
12,106,758
8,791,971-1,190,010
24,708,719

167,873-23,287-2,393
142,193
92,723472,685
25,679,925
55,631,310

266,135-5,269-2,108258,757
91,571
456,081
25,515,130
56,845,141

(2) Quarterly consolidated statements of income and statements of comprehensive income
Quarterly consolidated statements of income
Consolidated first quarter(Unit: thousand yen)
Q1 FY2018(January 1, 2018 March 31, 2018)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance return
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Share of loss of entities accounted for using equity
methodOther
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sales of non-current assets
Gain on reversal of share acquisition rights
Total extraordinary income
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―5―

Q1 FY2019(January 1, 2019 March 31, 2019)15,521,703
12,319,963
3,201,739
2,109,491
1,092,247

15,470,991
12,332,885
3,138,105
2,504,341
633,764

3,031
9,902
4,896
18,38736,217

2,296
5,268
27,37927,71262,656

21,032
39,97816,24041,67523,234
12,651
96,897
1,031,567

43,30531,146132,369
564,051

385,099216
385,315
1,416,883
496,898
55,694
552,593864,290
21,403842,886－
1,152
1,152
565,203230,234
89,311
319,545
245,658-18,100
263,758

Quarterly consolidated comprehensive statements of income
Consolidated first quarter(Unit: thousand yen)
Q1 FY2018(January 1, 2018 March 31, 2018)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparent
Comprehensive income attributable to non-controllinginterests―6―

Q1 FY2019(January 1, 2019 March 31, 2019)864,290245,658

50,819-28,587266

98,261
7,907
285-20,073
2,424
866,7154,626
111,080
356,738

850,096

371,582

16,618-14,843

(3) Notes to quarterly consolidated financial statements(Notes on the premise of a going concern)
Not applicable.
(Notes in the event of significant changes in shareholders’ equity)
Not applicable(Segment Information)
Business Segment Information
I Q1 FY2018 (January 1, 2108 - March 31, 2018)
As disclosed under (Notes related to changes in reportable segments, etc.) for the first quarter of the current consolidated fiscalyear.
II Q1 FY2019 (January 1, 2019 - March 31, 2019)
As the AOI TYO Group consists of a single Advertising Business segment, we have omitted separate disclosure herein.
(Notes related to changes in reportable segments, etc.)
The AOI TYO Group had consisted of two reportable segments: Advertising Business and Video-Related Business. However, asof the first quarter of the current consolidated fiscal year, the group consists of a single business segment.
Sales and profits in the Video-Related Business have been minor in importance to the group. After reconsidering the AOI TYOGroup business, management asset allocation, the state of business management systems, etc., we made the rational decision tomanage our whole business under a single segment defined as Advertising Business.
With this change, the AOI TYO Group now consists of a single Advertising Business segment. Accordingly, we have omitted
reporting of segment information for the first quarters of the prior and current consolidated fiscal years.
(Supplementary Information)
The company adopted Partial Amendment to Accounting Standard for Tax-Effect Accounting (ASBJ Statement No.28,February 16, 2018) at the beginning of the first quarter of the current consolidated fiscal year. Under this standard, thecompany presents deferred tax assets under investments and other assets and deferred tax liabilities under non-current
liabilities.

―7―