May 12, 2016

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2016
[Japanese GAAP]
Company name: AOKI Holdings Inc.
Listings: TSE First Section
Stock code:
8214
URL: http://www.aoki-hd.co.jp/
Representative:
Akihiro Aoki, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of Annual General Meeting of Shareholders:June 29, 2016
Scheduled date of filing of Annual Securities Report:
June 30, 2016
Scheduled date of payment of dividend:
June 8, 2016
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on May 12, 2016 at 14:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2016 (April 1, 2015 – March 31, 2016)(1) Consolidated results of operations(Percentages shown for sales and incomes represent year-on-year changes)
Profit attributable toSales
Operating profit
Ordinary income
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
FY3/16
188,594
2.6
17,789(6.5)
17,627
(6.8)
9,711
(4.7)
FY3/15
183,805
2.4
19,028(6.7)
18,914(9.4)
10,185(4.7)
Note: Comprehensive income (million yen) FY3/16: 8,919 (down 18.5%)
FY3/15: 10,949 (up 3.7%)
Net income per
Diluted net income
Return on equity
share
per share
Yen
Yen%
FY3/16107.55
6.9
FY3/15111.707.5
Reference: Equity in income of affiliates (million yen)
FY3/16: -Ordinary income
on total assets
%
7.7
8.5
FY3/15: -Operating profit to
sales
%
9.4
10.4

(2) Consolidated financial position
Total assets
Million yen
As of Mar. 31, 2016
230,363
As of Mar. 31, 2015
230,166
Reference: Shareholders’ equity (million yen)

Net assets
Million yen
142,926
139,675
As of Mar. 31, 2016: 142,838

Equity ratio%

Net assets per share
Yen
62.0
1,593.03
60.7
1,531.81
As of Mar. 31, 2015: 139,675(3) Consolidated cash flow position
Cash flows fromoperating activities
Million yen
12,61018,685

FY3/16
FY3/15

Cash flows frominvesting activities
Million yen(6,969)(16,324)

Cash flows fromfinancing activities
Million yen(7,306)
4,245

Cash and cash equivalents
at end of period
Million yen
27,56029,226

2. Dividends
Dividend per share
1Q-endYen
FY3/15
FY3/16
FY3/17 (forecasts)-

2Q-end3Q-end

Yen
18.00
20.00
21.00

Yen
-

Year-end

Total

Yen
18.00
20.00
22.00

Yen
36.00
40.00
43.00

Dividend payout Dividend on
ratio
equity(consolidated) (consolidated)
Million yen
%
%
3,282
32.2
2.4
3,592
37.2
2.6
43.8
Total
dividends

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Sales
First half
Full year

Million yen
82,680
194,600

Operating profit
%
1.2
3.2

Million yen
400
15,800%(89.1)(11.2)

Ordinary income
Million yen
350
15,700%(90.3)(10.9)(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
100
(95.4)
1.12
8,800
(9.4)
98.14

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:

Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None

Note: Please refer to “5. Consolidated Financial Statements, (5) Notes to Consolidated Financial Statements” on page 16 of theattachments for further information.

(3) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Mar. 31, 2016:

90,649,504 shares

As of Mar. 31, 2015:

91,249,504 shares

As of Mar. 31, 2015:

66,492 shares

2) Number of shares of treasury stock at the end of the period
As of Mar. 31, 2016:

984,762 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2016:

90,297,252 sharesFiscal year ended Mar. 31, 2015:

91,183,616 shares

Note 1: Indication of audit procedure implementation status
The current summary report is not subject to the audit procedures based on the Financial Instruments and Exchange Act. At thetime of disclosure, the audit procedures for the consolidated financial statements have not been completed.

Note 2: Cautionary statement with respect to forecasts and other matters
Cautionary statement with respect to forecasts
Forecasts regarding future performance in these materials are based on assumptions judged to be valid and information available
to the Company at the time the materials were created. These materials are not promises by the Company regarding future
performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to “(1)Analysis of Business Results, Forecasts for the new fiscal year” on page 3 of the attachments regarding preconditions or otherrelated matters for the forecast shown above.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts on Thursday, May 19, 2016.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Contents of Attachments
1. Analysis of Business Results and Financial Position

2(1) Analysis of Business Results

2(2) Analysis of Financial Position

4(3) Basic Profit Allocation Policy, and Dividends in the Current and Next Fiscal Years5

2. Corporate Group6

3. Management Policies

8(1) Basic Management Policy

8(2) Performance Targets

8(3) Medium to Long-term Business Strategy

8(4) Challenges

8

4. Basic Approach for the Selection of Accounting Standards

8

5. Consolidated Financial Statements

9(1) Consolidated Balance Sheet

9(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income11(3) Consolidated Statement of Changes in Shareholders’ Equity

13(4) Consolidated Statement of Cash Flows

15(5) Notes to Consolidated Financial Statements

16

Going Concern Assumption

16

Changes in Accounting Policies

16

Notes to Consolidated Balance Sheet

16

Notes to Consolidated Statement of Income

17

Notes to Consolidated Statement of Comprehensive Income

18

Notes to Consolidated Statement of Changes in Shareholders’ Equity

18

Notes to Consolidated Statement of Cash Flows20

Segment and Other Information

21

Per Share Information

24

Subsequent Events

24

1

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

1. Analysis of Business Results and Financial Position(1) Analysis of Business Results
1) Business results in the fiscal year under review
In the fiscal year that ended on March 31, 2016, the Japanese economy was in a moderate recovery phase, due inpart to improvements in corporate earnings and employment conditions. However, the sense of businessstagnation mounted toward the end of the fiscal year, due to deceleration in emerging market economies, yen
appreciation and other factors. In addition, there remains a lack of underlying strength in personal consumption,and the outlook remains opaque.
In this environment, the AOKI Group implemented various measures in each business segment as discussed
below. As a result, business performance in the fiscal year under review is as follows:
Sales
Operating profit
Ordinary income
Profit attributable to owners of parent

188,594 million yen
17,789 million yen
17,627 million yen
9,711 million yen(up 2.6% year-on-year)(down 6.5% year-on-year)(down 6.8% year-on-year)(down 4.7% year-on-year)

Fashion Business
AOKI strengthened its offerings of ideas in Premium Wash Suits and other functional apparel and Personal Order
Suits, which are tailored to customers’ preferred designs. We also responded to increasing demand forbusiness-to-casual styles and, through collaboration with ORIHICA, rolled out a line of Set-up Suits. Furthermore,
we launched Kyukoku no Shukatsu Suits targeting job-hunting students. As the number of female customers isincreasing each year, AOKI further expanded its offerings for women, including the Raku-Raku Kirei Series. On
the sales front, sales per customer increased thanks to the uptake of “AOKI is your stylist” and styling advice.
Twelve new stores were opened, including AOKI’s first store in Ito-Yokado, and two stores were closed forrelocation and other reasons. As a result, there were 567 AOKI stores at the end of the fiscal year, compared with
557 one year earlier.
In October 2015, we ran its first TV commercials for the ORIHIKA line of apparel in an effort to attract newcustomers. In addition, AOKI launched THE 3rd SUITS, a jacket-and-pants style, in response to a growing
diversity of business styles. This line was particularly well received by businessmen in their 20s to 40s. Twelve
new stores were opened during the fiscal year, and nine stores were closed to improve operating efficiency. As aresult, there were 144 ORIHICA stores at the end of the fiscal year compared with 141 one year earlier.
Sales benefited from the new stores, higher sales per customer and strong sales at ORIHICA, and increased 1.2%
to 114,015 million yen. Operating profit decreased 8.9% to 9,818 million yen, as existing stores encounteredchallenges due to a shift in summer business fashion preferences and an abnormally warm winter.
Anniversaire and Bridal Business
ANNIVERSAIRE INC. operates guesthouse-style wedding and reception facilities. To invigorate its facilities, werenovated six facilities, including the first-floor entrance hall of ANNIVERSAIRE OMOTESANDO. We also
focused on sales of original jewelry and baby rings, and reinforced operations involving rental tiaras with original
designs and the Proposal Plan service.
As a result, we maintained the average price per couple, but due to such factors as a decrease in the number ofcouples married, sales decreased 5.2% to 29,321 million yen and operating profit decreased 14.6% to 3,591
million yen.
Karaoke Facility Operations Business
At VALIC Co., Ltd., which operates karaoke facilities, there were a number of activities aimed at increasing thenumber of customers. More limited-time-only menu items were offered and there were marketing activities for avariety of party plans to meet the needs of companies and other organizations. There were also marketing
campaigns using tie-ups with popular artists and characters. This business also launched the new “CINEKARA”
2

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Private Cinema service, the world’s first service that provides karaoke rooms where guests can watch the latest
movies. Eight karaoke facilities were opened during the fiscal year, mainly at locations near railway stations. We
accepted transfers of seven facilities in the Osaka region, and one facility was closed. As a result, there were 183
karaoke facilities at the end of the fiscal year compared with 169 at the end of the previous fiscal year.
Sales increased 4.1% to 18,240 million yen and operating profit decreased 13.0% to 1,489 million yen due to anincrease in the spending on renovation.
Café Complex Operations Business
VALIC Co., Ltd., which also operates café complexes, took numerous actions to attract more customers. One way
was a heightened focus on offering limited-time-only menu items. There were also marketing campaigns using
tie-ups with other companies and a variety of services were upgraded including the introduction of KAIKATSU
CLUB app. For revitalizing existing locations, 18 facilities were renovated. Improvements included the additionof more amusement content and sections exclusively for women. During the fiscal year, VALIC actively opened
36 facilities, including the first facility exclusively for women and café complexes near railway stations, andclosed one. As a result, there were 295 café complexes at the end of the fiscal year compared with 260 one year
earlier.
Sales increased 19.1% to 27,054 million yen mainly due to the benefits from new facilities and ongoing strong
sales at existing facilities. Operating profit also increased 26.8% to 2,291 million yen.
2) Forecasts for the new fiscal year
In the fiscal year ending on March 31, 2017, we expect the Japanese economy to remain in a modest recovery
phase, underpinned by improvements in the employment and income situation, as well as various government
measures. At the same time, the outlook is likely to remain unpredictable due to overseas economic and exchange
rate trends, as well as moves to raise the consumption tax rate in Japan. The AOKI Group will use a variety ofactions in response to diversifying consumer needs to respond to the changing times and operate with speed andefficiency. In addition, we will continue to open more stores and revitalize existing locations to build a more
powerful infrastructure.
In the Fashion Business, AOKI will strive to achieve medium-term growth by making proactive investments instore renovations, and will focus on invigorating existing stores by cultivating its stylist system. At the same time,
we will strive to respond accurately to increasingly diverse consumer demand and endeavor to ensure customer
satisfaction. ORIHICA will continue to strengthen its product and sales capabilities and further enhance
profitability by boosting operating efficiencies. We plan to open approximately 13 stores in the Fashion Businessduring the fiscal year ending on March 31, 2017.
In the ANNIVERSAIRE and Bridal Business, we will make the ANNIVERSAIRE brand more powerful withactivities that emphasize the strengths of our wedding and reception facilities and clearly communicate the central
concept for ANNIVERSAIRE. To improve operating efficiency, we will further improve business operations andrenovate facilities.
In the Karaoke Facility Operations Business, we will continue to revitalize existing locations. Actions include
offering more limited-time-only menu items and party course menu selections, joint marketing campaigns withother companies, and proactive renovation of facilities. We plan to open 9 locations during the fiscal year.
In the Café Complex Operations Business, we are focusing on enlarging the selection of content and upgrading
the menu. We will pursue other business categories, offer more areas exclusively for women and concentrate on
more store openings near railway stations in a proactive new-store strategy targeting 44 store openings. Anothergoal is establishing a dominant presence in targeted markets.
By precisely enacting the various measures described above, we expect operating performance to increase in thefiscal year ending March 31, 2017. Although we anticipate an increase in sales we expect income to decline as we
incur renovation and new store opening expenses in a bid to ensure medium-term growth. Our forecasts for the
fiscal year ending March 31, 2017 are as follows.

3

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Forecast by business segment for the fiscal year ending March 31, 2017
Anniversaireand Bridal

Karaoke Facility
Operations

Café Complex
Operations

Consolidated

117,000

28,25019,20030,200

194,600

YoY change (%)

102.6

96.3

105.3

111.6

103.2

Segment profit (Millions of yen)

8,900

2,800

1,400

2,200

15,800YoY change (%)

90.6

78.0

94.0

96.0

88.8

Fashion
Sales (Millions of yen)

Note: Segment profit is operating profit. The total segment profits differ from consolidated operating profit because of
consolidation adjustments.

(2) Analysis of Financial Position
1) Balance sheet position
Total assets at the end of the fiscal year under review increased 196 million yen from the end of the previous
fiscal year to 230,363 million yen.
Current assets increased 129 million yen from the end of the previous fiscal year. Although cash in hand and inbanks decreased 1,665 million yen due to capital investments, accounts receivable-trade increased 445 million
yen and inventories increased 1,358 million yen due to new store openings among other factors. Fixed assets
increased 67 million yen from the end of the previous fiscal year as deferred income tax assets increased 666
million yen, while tangible fixed assets decreased 462 million yen due to depreciation and other factors.
Current liabilities decreased 5,148 million yen from the end of the previous fiscal year. There were decreases of
1,845 million yen in accounts payable-trade resulting from a decrease in procurement, 1,618 million yen inaccounts payable-other due to a decrease in accrued consumption taxes, and 1,119 million yen in accrued income
taxes. Long-term liabilities increased 2,094 million yen. It was mainly due to increases of 950 million yen in
long-term debt due to capital investments, and 470 million yen in net defined benefit liability.
Net assets increased 3,251 million yen from the end of the previous fiscal year. Although there was a decrease of
923 million yen in capital surplus due to the purchase and retirement of treasury stock, treasury stock increased
1,391 million yen and retained earnings increased 6,270 million yen as a result of a profit attributable to ownersof parent and dividend from surplus.
2) Cash flow position(Millions of yen)
FY3/16

FY3/15
Cash flows from operating activities

18,685

12,610Cash flows from investing activities(16,324)(6,969)Cash flows from financing activities

4,245(7,306)

Increase (decrease) in cash and cash equivalents

6,606(1,665)

Cash and cash equivalents at beginning of period

22,61929,226

Cash and cash equivalents at end of period

29,226

27,560Cash and cash equivalents at the end of the fiscal year under review decreased 1,665 million yen from the end of
the previous fiscal year to 27,560 million yen mainly due to a decrease in profit before income taxes.
Net cash provided by operating activities decreased 6,075 million yen to 12,610 million yen on a year-on-yearbasis. The principal factors were profit before income taxes of 15,339 million yen and depreciation andamortization of 7,677 million yen, while there was income taxes paid of 7,109 million yen (the net of income tax
payments and refunds).
Net cash used in investing activities decreased 9,355 million yen to 6,969 million yen on a year-on-year basis.
This was mainly due to the payments of 5,777 million yen for the acquisition of tangible fixed assets for capital
investment, and leasehold and guarantee deposits of 1,089 million yen.
Net cash used in financing activities was 7,306 million yen (compared with net cash provided of 4,245 million

4

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

yen one year earlier). This was mainly due to scheduled repayment of long-term debt of 4,450 million yen,
repayments of lease obligations of 1,899 million yen, payments for purchase of treasury stock of 2,315 million
yen, and cash dividends paid of 3,439 million yen, while there were proceeds from long-term debt of 5,000
million yen for capital expenditure.
Reference: Cash flow indicators
FY3/12

FY3/13

FY3/14

FY3/15

FY3/16

Shareholders’ equity ratio (%)

58.6

57.5

61.7

60.7

62.0

Shareholders’ equity ratio based on market prices (%)

36.7

52.2

62.8

67.3

52.9

Interest-bearing debt to cash flow ratio (years)

2.0

2.3

2.2

2.4

3.6

Interest coverage ratio (times)

54.0

55.1

50.4

59.7

38.0

Notes: 1. Shareholders’ equity ratio: Shareholders’ equity / Total assets
2. Shareholders’ equity ratio based on market prices: Market capitalization / Total assets
3. Interest-bearing debt to cash flow ratio: Interest-bearing debt / Cash flows
4. Interest coverage ratio: Cash flows / Interest payments* All indicators are calculated based on consolidated figures.
* Market capitalization is calculated based on the number of shares outstanding (excluding treasury stock).
* Cash flows are calculated using the figures for operating cash flows.
* Interest-bearing debt includes all liabilities on the consolidated balance sheet that incur interest. Interest payments
are calculated using the figures for interests paid in the consolidated statement of cash flows.

(3) Basic Profit Allocation Policy, and Dividends in the Current and Next Fiscal Years
We have changed our basic policy as follows.
We recognize the allocation of profits as one of our most important management priorities, taking into
consideration such factors as future business development and reinforcing the financial structure. With regard to
dividends, while maintaining a higher level than in previous years our basic policy is to achieve a dividend
payout ratio of 30% or more. In addition, in the absence of specific funding needs, our basic policy is to maintaintotal return ratio of 50% or more through measures such as buying back our own shares.
At a meeting on May 12, 2016, the Board of Directors approved a year-end dividend of 20 yen per share inappreciation of our shareholders’ ongoing support. This dividend, combined with the interim dividend of 20 yen
per share, results in a dividend of 40 yen per share for the fiscal year that ended on March 31, 2016, up 4 yenfrom the preceding fiscal year. In addition, on February 15, 2016, the Board of Directors passed a resolution toacquire up to 2.5 million of our own shares by January 31, 2017.
For the fiscal year ending on March 31, 2017, based on the current basic policy and taking into account suchconsiderations as the need for funds, we forecast a dividend of 43 yen per share, which is 3 yen higher than thedividends paid during the previous fiscal year. This figure is the sum of an interim dividend of 21 yen and a
year-end dividend of 22 yen per share. We plan to expeditiously acquire and retire treasury stock, taking into
account such factors as investment plans, the status of funding and the share price.
In order to achieve sustainable growth into the future, retained earnings will be set aside for future businessdevelopment including capital investments in each business, product development to meet consumer needs, andIT system investment.

5

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

2. Corporate GroupThe AOKI Group is comprised of AOKI Holdings Inc. (the Company), its three consolidated subsidiaries, three
non-consolidated subsidiaries, one non-equity-method affiliate, and one related company, and primarily involvedin the Fashion Business, ANNIVERSAIRE and Bridal Business, Karaoke Facility Operations Business, and Café
Complex Operations Business.
Details of the Group businesses, and the positioning of the Company and affiliated companies, are as follows.
(1) Fashion Business
AOKI Inc. operates a chain of fashion specialty store “AOKI,” that are located primarily in suburban roadside
locations and that sells men’s and women’s clothing, accessories, and fashion products, and “ORIHICA” chain of
stores that propose new “business” and “business-to-casual” styles targeting men and women in their 20s to 40s.
(2) Anniversaire and Bridal Business
ANNIVERSAIRE INC. provides mansion house-style wedding facilities that offer dreamy and enchanting
wedding ceremonies. ANNIVERSAIRE OMOTESANDO is a mixed-use facility geared to the needs ofcelebrations for all occasions, centered on the ANNIVERSAIRE WEDDING.
(3) Karaoke Facility Operations Business
VALIC Co., Ltd. operates COTE D’AZUR, a karaoke facility that draws inspiration from the famous upscale
coastal region in the south of France to create a refreshing and relaxing place for making special memories of
conversations and refined music.
(4) Café Complex Operations Business
VALIC Co., Ltd. operates KAIKATSU CLUB, a “private-space” café complex modeled after the island of Bali
which provides a relaxing and rejuvenating space to escape the stresses of modern life.
(5) Other Businesses
Related company ANNIVERSAIRE HOLDINGS INC. is involved in real estate leasing and other businesses.
Affiliate Aoki Information Development Co., Ltd. is involved in the sales agency business for non-life insurance.

6

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

An organizational chart of the AOKI Group is as follows.

General customers
Marketing clothing
and accessories
mainly for men

Marketing businessand business-to-casualmerchandise for men
and women

Operating karaoke
facility “COTE
D’AZUR”(Karaoke Facility
Operations Business)(Fashion Business)
AOKI and ORIHICA

Operating café complex“KAIKATSU CLUB” andother facilities(Café complex
Operations Business)

Subsidiary
AOKI Inc.

Subsidiary
VALIC Co., Ltd.

(Consolidated subsidiary)(Consolidated subsidiary)(Anniversaire and Bridal
Business)
Subsidiary
ANNIVERSAIRE INC.
(Consolidated subsidiary)

Management support
Administrative service

Real estateleasing

The Company
AOKI Holdings Inc.
Sale of insurance products
Related company

Affiliate

ANNIVERSAIREHOLDINGS INC.

Aoki Information
Development Co., Ltd.
(Non-equity-method affiliate)

Three other non-consolidated subsidiaries

7

Operatingweddingfacilities

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

3. Management Policies(1) Basic Management Policy
The AOKI Group is guided in all of its pursuits by the three principles of business integrity, social responsibility,
and community service. Our basic management policy is to promote systems of management and operation thatenable us to adapt to changes in the business environment and allow the Company to continue to exist and prosper.
This basic policy is founded on the following three pillars:
1) Response to customer needs
2) Self-reliance3) Promotion of management efficiency
Based on this policy, we strive to earn the trust and meet the expectations of our customers and shareholders.
(2) Performance Targets, (3) Medium to Long-term Business Strategy
Information on these subjects is not presented since there are no significant changes from the financial results forthe fiscal year ended on March 31, 2014 (released on May 9, 2014).
Financial results are available on the following URLs.
AOKI Holdings website: http://ir.aoki-hd.co.jp/en/IRFiling/Results.html
Tokyo Stock Exchange website (company search): http://www.jpx.co.jp/english/listing/co-search/index.html
Due primarily to the impact of a lackluster personal consumption environment on the Fashion Business, during
the fiscal year ended on March 31, 2016, the operating margin was 9.4%, return on equity 6.9% and earnings per
share 107.55 yen.
(4) Challenges
Amid a changing operating environment, we will pursue measures in each of our businesses in the aim ofachieving medium to long-term growth.
Please refer to “1. Analysis of Business Results and Financial Position, (1) Analysis of Business Results, 2)
Forecasts for the new fiscal year” on page 3 for further information regarding performance targets.
4. Basic Approach for the Selection of Accounting Standards
The AOKI Group’s operations are located in Japan and the Group has little or no need of raising funds in overseas
markets. Moreover, the percentage of shares held by foreign shareholders is relatively small. In view of the above
factors the Company currently uses Japanese accounting standards for its financial statements.
The Company will consider using International Financial Reporting Standards (IFRS) if considered necessary by
the future direction of the Group’s business development, the use of IFRS by other companies in Japan and otherfactors.

8

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

5. Consolidated Financial Statements(1) Consolidated Balance Sheet
FY3/15(As of Mar. 31, 2015)(Millions of yen)
FY3/16(As of Mar. 31, 2016)

AssetsCurrent assets
Cash in hand and in banks

29,226

27,560Accounts receivable-trade

8,991

9,437

Inventories*1

26,476*1

27,835

Deferred income tax assets

2,008

1,953

Other current assets

7,104

7,157

Allowance for doubtful accounts

(37)

(45)

73,76973,899Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures

120,623

124,107

Accumulated depreciation(61,664)(65,206)

Buildings and structures, net

58,95958,900Machinery, vehicles, tools, furniture and fixtures
Accumulated depreciation
Machinery, vehicles, tools, furniture and fixtures,
net
Land

*2

Lease assets
Accumulated depreciation

14,40815,171(6,846)(7,467)

7,561

7,703

37,095*2

36,934

10,672

11,754(6,585)(7,531)

Lease assets, net

4,086

4,223

Construction in progress

605

84

Total tangible fixed assets

108,308

107,846

6,550

6,680

Intangible fixed assets
Investments and other assets
Investment securities

*3

6,172

*3

5,328

Guarantee deposits

8,333

8,307

Leasehold deposit

20,176

20,576

Deferred income tax assets

5,027

5,694

Other investments and other assets

1,867

2,070

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,53841,936

Total fixed assets
Total assets

9156,396

156,464

230,166

230,363

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

(Millions of yen)
FY3/16(As of Mar. 31, 2016)

FY3/15(As of Mar. 31, 2015)
Liabilities
Current liabilities
Accounts payable-trade

19,86718,021

Current portion of long-term debt

4,450

4,050

Lease obligations

1,578

1,570

Accounts payable-other

6,748

5,130

Accrued income taxes

3,789

2,669

Accrued bonuses for employees

1,735

1,708

105

98

Other current liabilities

5,123

4,999

Total current liabilities

43,397

38,248Long-term debt

35,32536,275

Lease obligations
Accrued retirement benefits for directors and statutory
auditors
Accrued costs for customer point program

2,846

3,117

1,838

1,845

958

1,014

Accrued bonuses for directors and statutory auditors

Long-term liabilities

Net defined benefit liability

382

853

Asset retirement obligations

4,773

5,109

Other long-term liabilities

969

973

Total long-term liabilities

47,09349,18790,49187,436

Common stock

23,282

23,282

Capital surplus

28,757

27,833Retained earnings

86,65892,929Treasury stock(45)(1,436)

138,654

142,609

Unrealized gain on securities

1,229

612

Remeasurements of defined benefit plans

(208)

(383)

Total accumulated other comprehensive income

1,021

229

-

87

139,675

142,926

230,166

230,363

Total liabilities
Net assets
Shareholders’ equity

Total shareholders’ equity
Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

10

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
FY3/15(Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

183,805

188,594

Cost of sales

97,019101,424

Gross profit

86,78587,170

Sales

Selling, general and administrative expenses*1

Operating profit

67,757*1

69,38019,02817,789Interest income

107

108

Dividend income

138

134

Rental income on real estate

616

607

Non-operating profit

Other

312

340

1,173

1,191

Interest expenses

316

328

Expenses on sub-leased real estate

527

536

Total non-operating profit
Non-operating expenses

Loss on disposal of fixed assets

122

254

Other

322

234

Total non-operating expenses
Ordinary income
Extraordinary gains
Gain on sale of investment securities
Total extraordinary gains

1,287

1,353

18,914

17,627

-

68

-

68

Extraordinary losses
Impairment loss

*2

Litigation settlement

1,942
-

Total extraordinary losses

*2

1,917
439

1,942

2,356

Profit before income taxes

16,972

15,339Current income taxes

7,209

5,881

Deferred income taxes

(422)

(253)

Total income taxes

6,787

5,628

Profit10,185

9,711

Profit attributable to owners of parent

10,185

9,711

11

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Consolidated Statement of Comprehensive Income
FY3/15(Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

10,185

9,711

679

(616)

ProfitOther comprehensive income
Unrealized gain on securities
Remeasurements of defined benefit plans, net of tax

84

Total other comprehensive income*1

Comprehensive income

763

(175)
*1

(791)

10,9498,919

10,949

8,919

-

-

Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

12

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

(3) Consolidated Statement of Changes in Shareholders’ Equity
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
Shareholders’ equity

Balance at the beginning ofcurrent period
Cumulative effects of changes
in accounting policies
Restated balanceCommon stock

Capital surplus

23,28228,757Retainedearnings
79,029Treasury stock

Total
shareholders’equity(43)

131,026

726
23,28228,75779,756726(43)131,753

Changes of items during period
Dividend from surplus(3,282)(3,282)

Profit attributable to owners ofparent10,185

10,185Purchase of treasury stock
Disposal of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period

0

(1)

(1)

0

0

-

0

6,902

(1)

6,900

23,28228,75786,658(45)

138,654

Accumulated other comprehensive income
Unrealized gain on
securities
Balance at the beginning ofcurrent period
Cumulative effects of changes
in accounting policies
Restated balance

Total accumulated
Remeasurements ofother comprehensive
defined benefit plansincome

549

(292)

257

Total net assets

131,283
726

549

(292)

257

132,010

Changes of items during period
Dividend from surplus(3,282)

Profit attributable to owners ofparent10,185Purchase of treasury stock(1)

Disposal of treasury stock0

Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period

679

84

763

763

679

84

763

7,664

1,229

(208)

1,021

139,675

13

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
Shareholders’ equity

Balance at the beginning ofcurrent period
Cumulative effects of changes
in accounting policies
Restated balanceCommon stock

Capital surplus

23,28228,757Retainedearnings
86,658Treasury stock

Total
shareholders’equity(45)

138,654-

23,28228,75786,658(45)

138,654

Changes of items during period
Dividend from surplus
Profit attributable to owners ofparent(3,440)(3,440)

9,711

9,711

Purchase of treasury stock
Retirement of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period(923)(2,315)(2,315)

923

-

-

(923)

6,270

(1,391)

3,955

23,282

27,83392,929(1,436)142,609

Accumulated other comprehensive income(Millions of yen)

Balance at the beginning ofcurrent period
Cumulative effects of changes
in accounting policies
Restated balance

Total
accumulated
Remeasurements
Unrealized gain
otherof defined benefit
on securities
comprehensive
plansincome
1,229

(208)

1,021

Stock
acquisitionrightsTotal net assets-

139,675
-

1,229

(208)

1,021

-

139,675

Changes of items during period
Dividend from surplus(3,440)

Profit attributable to owners ofparent

9,711

Purchase of treasury stock(2,315)Retirement of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period

(616)

(175)

(791)

87

(704)

(616)

(175)

(791)

87

3,251

612

(383)

229

87

142,926

14

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

(4) Consolidated Statement of Cash Flows
FY3/15(Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

Profit before income taxes

16,972

15,339Depreciation and amortization

7,188

7,677

Impairment loss
Increase (decrease) in accrued retirement benefits for
employees
Increase (decrease) in accrued retirement benefits for
directors and statutory auditors
Increase (decrease) in accrued costs for customer point
programInterest and dividend income

1,942

1,917

133

210

73

6

190

55

(245)

(242)

316

328

Cash flows from operating activities

Interest expenses
Loss (gain) on sales of investment securities
Decrease (increase) in accounts receivable-trade
Decrease (increase) in inventories

-

(68)

1,135

(445)

(3,724)(1,368)

Increase (decrease) in accounts payable-trade(357)(1,845)

Increase (decrease) in accrued consumption taxes

2,440(1,951)

Other

921

684

Subtotal

26,987

20,296

Interest and dividend income received

193

193

(312)

(331)

Income taxes paid

(9,435)(8,352)

Income taxes refund

1,253

1,243

-

(439)

18,685

12,610Interests paid

Litigation settlement paid
Net cash provided by operating activities
Cash flows from investing activities
Payments for acquisition of tangible fixed assets(13,210)(5,777)

Payments for acquisition of intangible fixed assets(1,351)(784)

Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Proceeds from sales of investment securities(1,549)(1,089)

362

375

-

114

Net decrease (increase) in trust beneficiary rights

(170)

747

Other

(405)

(556)

(16,324)(6,969)Proceeds from long-term debt

17,500

5,000

Repayments of long-term debt

(8,086)(4,450)

Repayments of lease obligations(1,888)(1,899)(1)(2,315)(3,278)(3,439)-87

Net cash used in investing activities
Cash flows from financing activities

Payments for purchase of treasury stock
Dividends paid
Proceeds from issuance of subscription rights to shares
Other

1

(290)

4,245

(7,306)

Effect of exchange rate change on cash and cash
equivalents

0(0)Increase (decrease) in cash and cash equivalents

6,606(1,665)

Net cash provided by (used in) financing activities

Cash and cash equivalents at beginning of period

22,619Cash and cash equivalents at end of period*115

29,22629,226*1

27,560AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016(5) Notes to Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Changes in Accounting Policies
Effective from the current fiscal year, the Company has adopted the “Accounting Standard for Business
Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013),“Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013),“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013) and otherstandards. In association with these changes, the presentation of net income and other items has been revised.
For consistency with these changes, the consolidated financial statements for the previous fiscal year have beenrevised.
Notes to Consolidated Balance Sheet*1. Breakdown of inventories(Millions of yen)
FY3/16(As of Mar. 31, 2016)

FY3/15(As of Mar. 31, 2015)
Merchandise

25,869Raw materials and supplies
Total

27,119606

715

26,476

27,835*2. Collateralized assets
FY3/15(As of Mar. 31, 2015)
Land

FY3/16(As of Mar. 31, 2016)

607

284

*3. The following items are applicable to non-consolidated subsidiaries and affiliates(Millions of yen)
FY3/16(As of Mar. 31, 2016)

FY3/15(As of Mar. 31, 2015)
Investment securities (stocks)315

4. Guarantee liabilities
The Company guarantees following bank loans for a company that is not consolidated.
FY3/15(As of Mar. 31, 2015)
AOKI HOLDINGS N.Y. INC.

415

414

(Millions of yen)
FY3/16(As of Mar. 31, 2016)369

5. The Company has current account overdraft agreements with major financial institutions in order to raise funds
efficiently. The balance of unused credit lines under these agreements as of the end of the fiscal year is asfollows.
(Millions of yen)
FY3/16(As of Mar. 31, 2016)

FY3/15(As of Mar. 31, 2015)
Current account overdraft
Credit used
Credit available

16

23,50025,000--23,50025,000AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Notes to Consolidated Statement of Income*1. Major items of selling, general and administrative expenses(Millions of yen)
FY3/15
FY3/16(Apr. 1, 2014 – Mar. 31, 2015) (Apr. 1, 2015 – Mar. 31, 2016)

Advertising expenses

11,781

12,202

Salaries and bonuses

17,901

18,319Provision of accrued bonuses for employees
Provision of accrued bonuses for directors and statutory
auditors
Retirement benefit expenses
Provision of accrued retirement benefits for directors andstatutory auditors
Welfare expense

1,312

1,382

104

98

622

634

133

134

3,704

3,675

Rents

14,88315,360Depreciation and amortization

2,670

3,074

*2. Impairment loss
The Group recognized an impairment loss on the following groups of assets.
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)
Use
Item
Location
Operating stores Buildings and structures, others Aizuwakamatsu City, Fukushima, etc.
Idle assets
Land, buildings and structures
Tsuru-gun, Yamanashi, etc.
The Group uses individual stores and idle asset items to group its assets.
Book value was impaired to recoverable value, and the resulting impairment loss (1,942 million yen) was
recognized as an extraordinary loss, for idle assets whose recoverable value had fallen below book value, andoperating stores set to be relocated or expected to remain in the red due to changes in conditions at the store
location and other factors.
Breakdown of impairment losses: operating stores 1,837 million yen (including buildings and structures 1,425
million yen and others 412 million yen) and idle assets 104 million yen (including land 86 million yen andbuildings and structures 17 million yen).
The recoverable value of this category of assets is measured by net sales value or utility value. The net sales value
is based on the appraisal of a real estate appraiser. The utility value is calculated by the discounted cash flow
method. A discount rate of between 6.0% and 6.3% is used for calculating the utility value.
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
Use
Item
Location
Operating stores
Buildings and structures, others Kawasaki City, Kanagawa, etc.
Subleasing stores
Buildings and structures
Suwa City, Nagano, etc.
Idle assets
Land
Fujiyoshida City, Yamanashi, etc.
The Group uses individual stores and idle asset items to group its assets.
Book value was impaired to recoverable value, and the resulting impairment loss (1,917 million yen) was
recognized as an extraordinary loss, for idle assets whose recoverable value had fallen below book value, andoperating stores and subleased stores set to be closed, relocated or expected to remain in the red due to changes in
conditions at the store location and other factors.
Breakdown of impairment losses: operating stores 1,836 million yen (including buildings and structures 1,499
million yen and others 337 million yen), subleasing stores 0 million yen (buildings and structures), and idle assets
79 million yen (land).
The recoverable value of this category of assets is measured by net sales value or utility value. The net sales value
is based on the appraisal of a real estate appraiser. The utility value is calculated by the discounted cash flow
method. A discount rate of between 5.6% and 5.9% is used for calculating the utility value.

17

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Notes to Consolidated Statement of Comprehensive Income*1. Re-classification adjustments and tax effect with respect to other comprehensive income(Millions of yen)
FY3/15
FY3/16(Apr. 1, 2014 – Mar. 31, 2015) (Apr. 1, 2015 – Mar. 31, 2016)

Unrealized gain on securities
Amount incurred during the year
Re-classification adjustments

961
-

(822)
(68)

Before tax effect adjustments
Tax effectUnrealized gain on securities

(961)
(281)
679

(890)
274
(616)

(28)
169

(396)
136

140
(56)
84

(260)
84
(175)

763

(791)

Remeasurements of defined benefit plans, net of tax
Amount incurred during the year
Re-classification adjustments
Before tax effect adjustments
Tax effectRemeasurements of defined benefit plans, net of tax
Total other comprehensive income

Notes to Consolidated Statement of Changes in Shareholders’ Equity
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)
1. Type of share and number of outstanding shares
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2014
91,249

Increase-

Number of shares
as of Mar. 31, 2015
91,2490

Number of shares
as of Mar. 31, 2015
66

Decrease-

2. Type and number of shares of treasury stock
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2014
65

Increase

Decrease1

Notes: 1. Increase in the number of shares of treasury stock (Thousand shares)
Purchase of odd-lot shares: 1
2. Decrease in the number of shares of treasury stock (Thousand shares)
Sales of odd-lot shares:
0

3. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 9, 2014
Board of Directors’ meetingon Nov. 7, 2014

CommonsharesCommonsharesTotal amount of dividend Dividend per(Millions of yen)share (Yen)Record date

Effective date

1,641

18

Mar. 31, 2014

Jun. 9, 2014

1,641

18

Sep. 30, 2014

Dec. 8, 2014

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution
Board of Directors’ meetingon May 8, 2015

Type ofshare
Commonshares

Source of Total amount of dividend Dividend per
Record date Effective datefunds(Millions of yen)share (Yen)
Retained
1,641
18 Mar. 31, 2015 Jun. 8, 2015
earnings

18

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
1. Type of share and number of outstanding shares
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2015
91,249

Increase

600

Number of shares
as of Mar. 31, 2016
90,649600

Number of shares
as of Mar. 31, 2016
984

Decrease-

Note: Decrease in the number of outstanding shares is due to retirement of treasury stock

2. Type and number of shares of treasury stock
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2015
66

Increase

Decrease

1,518

Notes: 1. Increase in the number of shares of treasury stock (Thousand shares)
Purchase of treasury stock pursuant to the Board of Directors’ resolution on May 8, 2015 and February 15, 2016:
1,517
Purchase of odd-lot shares: 0
2. Decrease in the number of shares of treasury stock (Thousand shares)
Retirement of treasury stock pursuant to the Board of Directors’ resolution on May 8, 2015: 600

3. Items related to acquisition rights for new sharesCompany

Stock acquisition rights(itemized)

Balance as ofType of shares Number of shares under stock acquisition rights(Thousand shares)
Mar. 31, 2016
under stockacquisition As of Apr. 1,
As of Mar. 31, (Millions of
Increase Decreaseyen)rights2016
2015

Reporting Stock acquisition rights by
Common905
905
87
company
way of stock options (2015)
shares
Notes: 1. Number of shares under stock acquisition rights: the number of shares assuming that all stock options have been
exercised.
2. Outline of changes in the number of shares under stock acquisition rights
The increase in the number of shares is due to the issuance of the stock acquisition rights.

4. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 8, 2015
Board of Directors’ meetingon Nov. 6, 2015

CommonsharesCommonsharesTotal amount of dividend Dividend per(Millions of yen)share (Yen)Record date

Effective date

1,641

18

Mar. 31, 2015

Jun. 8, 2015

1,799

20

Sep. 30, 2015

Dec. 7, 2015

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Type ofshare

Source offunds

Board of Directors’ meetingon May 12, 2016

CommonsharesRetainedearnings

Total amount of Dividend per
share
dividend(Yen)(Millions of yen)
1,793

19

20

Record date

Effective dateMar. 31, 2016

Jun. 8, 2016

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Notes to Consolidated Statement of Cash Flows*1. Reconciliation of cash and cash equivalents of the statement of cash flows and account balances of balance
sheet
FY3/15(Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

Cash in hand and in banks

29,226

27,560Cash and cash equivalents

29,226

27,560FY3/15(Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

1,546

2,162

2. Significant non-cash transactions
Assets and obligations applicable to the finance lease transaction

Assets and obligations applicable to the finance leasetransaction

20

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Segment and Other Information
Segment information
1. Overview of reportable segment
The Group defines reportable segments as businesses for which financial details can be compiled; the Board of
Directors will review this information on a periodic basis in order to assist with decisions about allocating
resources and evaluating the performance.
AOKI Holdings, as a pure holding company, supports the businesses of the various companies that comprise theGroup, while each business company proposes and executes comprehensive strategies for the respective products
and services they offer in the domestic market.
The products and services of each business company comprise different segments. The four reportable segments
are the Fashion Business, the ANNIVERSAIRE and Bridal Business, the Karaoke Facility Operations Business,and the Café Complex Operations Business. AOKI and ORIHICA are both included in one business segment, theFashion Business, because they fit all the conditions for grouping including similarities in economic
characteristics and product content.
The Fashion Business plans and sells men’s and women’s wear; the ANNIVERSAIRE and Bridal Business
operates wedding halls; the Karaoke Facility Operations Business operates karaoke facilities; and the Café
Complex Operations Business provides relaxation space with magazines, comics, massage chairs, Internet access,etc.
2. Calculation methods for sales, profits/losses, assets, liabilities, and other items for each reportable segment
The accounting treatment methods for reportable segments are generally the same as accounting principles andprocedures used for the preparation of the consolidated financial statements.
Profits for reportable segments are generally operating profit figures. Profits on and transfer amounts ofinter-segment transactions within the Group are based on current market prices.
3. Information related to sales, profits/losses, assets, liabilities, and other items for each reportable segment
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
Reportable segment

Karaoke
Anniversaire
Facility
and Bridal
Operations

Fashion

Café
ComplexOperations

Amounts shown on
Adjustment
consolidated(Note 1) financial statements(Note 2)

Total

Sales
External sales
Inter-segment sales
and transfers

112,669

30,902

17,51822,714

183,805-

183,805

5

14

4

-

25

(25)

-

Total

112,675

30,917

17,52322,714

183,830(25)

183,805

Segment profit

10,773

4,205

1,712

1,806

18,497531

19,028Segment assets

108,592

43,98914,753

19,258

186,593

43,572

230,166

2,029

1,785

1,352

1,474

6,641

434

7,075

8

-

-

5

13

-

13

5,175

968

1,737

3,186

11,067

6,105

17,173

Other items
Depreciation andamortization
Amortization of
goodwill
Increase in tangible
fixed assets andintangible fixed assets

Notes: 1. The above adjustments to segment profits are as follows.
(1) The 531 million yen adjustment to segment profit includes 4,469 million yen in elimination for inter-segment
transactions, and -3,937 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be

21

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016attributed to reportable segments.
(2) The 43,572 million yen adjustment to segment assets includes -27,419 million yen in elimination of theoffsetting receivables from subsidiaries, and company-wide assets of 70,992 million yen that cannot beallocated to any specific reportable segments. Company-wide assets consist mainly of the Company’s land,building and structures of the head office that cannot be attributed to reportable segments.
(3) The 6,105 million yen adjustment to an increase in tangible and intangible fixed assets includes investment inland to be used by the Group.
2. Segment profit is adjusted to be consistent with operating profit on the consolidated statement of income.

FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
Reportable segment

Karaoke
Anniversaire
Facility
and Bridal
Operations

Fashion

Café
ComplexOperations

Amounts shown on
Adjustment
consolidated(Note 1) financial statements(Note 2)

Total

Sales
External sales
Inter-segment sales
and transfers

114,01029,291

18,23827,053

188,594-

188,594

4

29

2

0

37

(37)

-

Total

114,015

29,321

18,24027,054

188,632(37)

188,594

Segment profit

9,818

3,591

1,489

2,291

17,191598

17,789Segment assets

111,656

41,983

14,612

21,975

190,227

40,135

230,363

2,387

1,760

1,312

1,629

7,090

468

7,559

8

-

1

5

15

-

15

2,107

1,114

1,768

4,099

9,089

371

9,461

Other items
Depreciation andamortization
Amortization of
goodwill
Increase in tangible
fixed assets andintangible fixed assets

Notes: 1. The above adjustments to segment profits are as follows.
(1) The 598 million yen adjustment to segment profit includes 4,586 million yen in elimination for inter-segment
transactions, and -3,987 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be
attributed to reportable segments.
(2) The 40,135 million yen adjustment to segment assets includes -32,753 million yen in elimination of theoffsetting receivables from subsidiaries, and company-wide assets of 72,888 million yen that cannot beallocated to any specific reportable segments. Company-wide assets consist mainly of the Company’s land,building and structures of the head office that cannot be attributed to reportable segments.
(3) The 371 million yen adjustment to an increase in tangible and intangible fixed assets mainly includes
investment in software to be used by the Group.
2. Segment profit is adjusted to be consistent with operating profit on the consolidated statement of income.

Related information
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Sales
No reportable information because there are no external sales outside Japan.
(2) Tangible fixed assets
No reportable information since the Company has no tangible fixed assets other than Japan.

22

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

3. Information by major client
This information is omitted because no external client accounts for more than 10% of sales on the consolidated
statement of income.
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Sales
No reportable information because there are no external sales outside Japan.
(2) Tangible fixed assets
No reportable information since the Company has no tangible fixed assets other than Japan.
3. Information by major client
This information is omitted because no external client accounts for more than 10% of sales on the consolidated
statement of income.
Information related to impairment losses on fixed assets for each reportable segment(Millions of yen)

FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)

Reportable segment
Elimination
Anniversaire Karaoke Facility Café Complex
orcorporate
Sub-totaland Bridal
Operations
Operations

FashionImpairment losses

962

-

567

382

1,913

Impairment losses

1,116

28

1,942

(Millions of yen)

FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)

Fashion

Total

Reportable segment
Elimination
Anniversaire Karaoke Facility Café Complex
Sub-total or corporate
and Bridal
Operations
Operations
620
169
1,906
10

Total
1,917

Information related to goodwill amortization and the unamortized balance for each reportable segment(Millions of yen)
FY3/15 (Apr. 1, 2014 – Mar. 31, 2015)
Reportable segment
Elimination
Anniversaire Karaoke Facility Café Complex
orcorporate
Sub-totaland Bridal
Operations
Operations

FashionBalance at end of period

17

-

-

12

30

Total

-

30

Note: Goodwill amortization is omitted because the same information is presented in segment information.
(Millions of yen)

FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)

Reportable segment
Elimination
Anniversaire Karaoke Facility Café Complex
orcorporate
Sub-totaland Bridal
Operations
Operations

FashionBalance at end of period

8

-

106

7

123

Total

-

Note: Goodwill amortization is omitted because the same information is presented in segment information.
Information related to negative goodwill profits for each reportable segment
No reportable information.

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123

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2016

Per Share Information(Yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

FY3/15(Apr. 1, 2014 – Mar. 31, 2015)
Net assets per share

1,531.81

1,593.03

Net income per share

111.70107.55

Notes: 1. Diluted net income per share is not presented since the Company has no outstanding dilutive securities in FY3/15
and has no potential stock with dilutive effects in FY3/16.
2. The following is a reconciliation of net income per share

Item

FY3/15(Apr. 1, 2014 – Mar. 31, 2015)(Millions of yen)
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)

10,185

9,711

-

-

10,185

9,711

91,18390,297-

Stock acquisition rights issued
pursuant to the Board of
Directors’ resolution on
November 18, 2015
Stock Acquisition Rights No. 5
Number of stock acquisitionrights: 9,050

Net income per share
Profit attributable to owners of parent
Net income not available to common stock
shareholders
Profit attributable to owners of parent applicable
to common stock
Average number of common shares outstanding
during the period (Thousand shares)

Summary of potential stock not included in thecalculation of diluted net income per share since
there was no dilutive effect

3. The following is a reconciliation of net assets per share

Item(Millions of yen)
FY3/16(As of Mar. 31, 2016)

FY3/15(As of Mar. 31, 2015)

Total net assets
Deduction on total net assets[of which stock acquisition rights]

139,675

142,926

-

87

-

[87]

Net assets applicable to common shares

139,675

142,838

Number of common stock shares used in calculationof net assets per share (Thousand shares)

91,18389,664

Subsequent Events
Not applicable.

* This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience ofreaders who prefer an English translation.

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