NEWS RELEASEAOI TYO Holdings Inc.
1-5-1, Osaki, Shinagawa-ku
Tokyo 141-8580

February 14, 2020

Notice Regarding Recognition of Extraordinary Loss (Consolidated) andRevision to Full-year Consolidated Performance Forecast

AOI TYO Holdings Inc. recorded an extraordinary loss for the fiscal year ended December 2019 as
described below. In conjunction with this extraordinary loss, we have revised the full-year consolidated
performance forecast as originally announced on August 9, 2019.

1. Recognition of extraordinary loss (consolidated)
To date, AOI TYO Holdings has recorded accounting and business process system software atconsolidated subsidiaries as assets. We plan to integrate systems for the group to achieve greater
efficiency and reduce costs. After researching recoverability under the Accounting Standard for
Impairment of Fixed Assets, we have decided to record an extraordinary loss of 1,125 million yen inimpairment loss for the systems in question.
We have also recorded 1,117 million yen in impairment loss related to a loss on valuation of investment
securities for certain investment securities held by our consolidated subsidiaries. This transaction is theresult of our consideration of a significant delay in business plan progress in light of the variance between
business plan projections made at the time of investment and actual performance to date.

2. Revised forecast of consolidated financial results for January 1 – December 31, 2019
Millions of yen, excepting net income per share
Net sales

OperatingincomeOrdinary
incomeNet income
attributable toowners of theparent

Net income pershare (¥)

Earlier forecast (A)63,600

2,300

2,150

1,050

44.63

Revised forecast (B)65,2202,110

1,750-1,280-54.48(B) – (A)

1,620-190-400-2,330

Percentage of changes

2.5%

-8.3%

-18.6%

64,792

3,433

3,325

Reference(FY2018 results)

1,952

82.48

3. Reasons for the revision of consolidated performance forecast
We forecast net sales to outperform our original performance forecast. Although sales to major advertising
agencies have decreased slightly, direct transactions with clients have increased. By media type, we
forecast TV commercial production to remain level year on year, while online video production shouldincrease.
At the same time, weaker profit margins in connection with increased orders in our Video Advertising
Business, which had been experiencing improving profit margins, and the impact of weak performance
among certain subsidiaries lead us to expect operating income and ordinary income somewhat lower thaninitial plan. Based on the extraordinary loss discussed under 1., above, we have revised our initial
performance forecast.
4. Dividend forecast for FY2019
We have left our forecast for year-end dividends unchanged from our previously announced figure of 12
yen per share (20 yen per share annual dividend when combined with an 8 yen per share interimdividend).
5. Outlook for FY2020 (January 1 – December 31, 2020)
During the fiscal year ending December 2020, we intend to reduce costs related to software, for which werecorded the impairment loss as described in 1., above, and reorganization of poorly performing
subsidiaries. At the same time, we are focused on measures to delve deeper and wider in business fields
described under our medium-term policies, looking toward long-term, sustainable corporate valueimprovement. We also intend to hire and develop more professionals, which is a strength of the AOI TYOGroup.
*The forecasts above are based on information available at the time. Actual performance may vary fromforecasts due to various factors that may occur in the future.