November 10, 2022

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2023
(Six Months Ended September 30, 2022)[Japanese GAAP]
Listings: Tokyo Stock Exchange
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://www.aoki-hd.co.jp/
Representative:
Hidekazu Azuma, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
November 11, 2022
Scheduled date of payment of dividend:
December 2, 2022
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on November 10, 2022 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2022
(April 1, 2022 – September 30, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
75,595
21.2
2,017
1,676
586
Six months ended Sep. 30, 2022
Six months ended Sep. 30, 2021
62,382
11.5(3,094)(3,436)(3,776)
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2022:
724 (-%)
Six months ended Sep. 30, 2021:(3,732) (-%)

Six months ended Sep. 30, 2022
Six months ended Sep. 30, 2021

Net income per
share
Yen
6.91
(44.51)

Diluted net income
per shareYen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
220,765
127,989
As of Sep. 30, 2022
233,008
127,641
As of Mar. 31, 2022
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2022: 127,343

Equity ratio
%
57.7
54.5
As of Mar. 31, 2022: 127,082

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

Year-end
Yen

Total
Yen

FY3/22
5.00
5.00
10.00
FY3/237.00
FY3/23 (forecasts)
10.00
17.00
Note: Revisions to the most recently announced dividend forecast: Yes
For more information, please see “Revisions to Consolidated Earnings Forecasts and Year-end Dividend Forecast for the Fiscal
Year Ending March 31, 2023” that was announced today (November 10, 2022).

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
172,700
11.5
8,800
61.7
8,150
86.9
4,100
59.9
48.29
Note: Revisions to the most recently announced consolidated forecast: Yes
For more information, please see “Revisions to Consolidated Earnings Forecasts and Year-end Dividend Forecast for the Fiscal
Year Ending March 31, 2023” that was announced today (November 10, 2022).

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury shares) at the end of the period
As of Sep. 30, 2022:

87,649,504 shares

As of Mar. 31, 2022:

87,649,504 shares

As of Mar. 31, 2022:

2,746,514 shares

Six months ended Sep. 30, 2021:

84,842,039 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2022:

2,746,746 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2022:

84,902,871 shares

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forecasts and other matters
Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements 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“(3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 of the attachments regarding
preconditions or other related matters for the forecast shown above.
Supplementary materials for quarterly financial results
Supplementary materials for quarterly financial results will be available on the Company’s website immediately after theearnings announcement on Thursday, November 10, 2022.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by telephone conference on
Thursday, November 24, 2022. Materials to be distributed at this event will be available on the Company’s website on themorning of the meeting.

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

Contents of Attachments
Pages
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

7

Quarterly Consolidated Statement of Income

7

Quarterly Consolidated Statement of Comprehensive Income8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Additional Information

10

Segment Information

10

1

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the recovery of the Japanese economy continued primarily with the supportof consumer spending. The main reasons are the absence of any restrictions on economic activity despite a rapid
increase in COVID-19 cases that started in July and the subsequent decline in the number of cases that started in
September. However, the outlook for the economy remains uncertain because of the negative impact on household
budgets of the yen’s rapid depreciation and inflation, the increase in the cost of raw materials, and other events.
Due to the measures of the AOKI Holdings Group explained in the following sections, net sales increased 21.2%
from one year earlier to 75,595 million yen, and operating profit was 2,017 million yen compared with a loss of
3,094 million yen one year earlier. There was an ordinary profit of 1,676 million yen compared with a loss of 3,436
million yen one year earlier and profit attributable to owners of parent was 586 million yen compared with a loss of
3,776 million yen one year earlier.
Operating results by segment are as follows.
Fashion Business
There were many activities to strengthen the lineups of casual apparel. These activities included Cool Biz apparel,
which is designed for comfort on hot summer days, Pajama Suits, Active Work Suits and T-shirts with Business Suit
Tailoring. In the women’s apparel category, there were measures to further enlarge selections of apparel that are
comfortable for work as well as leisure activities. One significant event was the launch of an office casual set-up
apparel created by fashion designer Akiko Ogawa as part of AOKI’s MeWORK Project for supporting working
women. During the first half, seven AOKI stores and six ORIHICA stores were closed to improve the efficiency ofstore operations. As a result, the number of stores decreased from 610 at the end of the previous fiscal year to 597 at
the end of the first half.
All of these measures generated strong sales of summer formal and other Cool Biz apparel and women’s and casual
apparel. Furthermore, the number of customers visiting stores has increased because of the easing of pandemic
restrictions. As a result, sales increased 18.9% year on year to 36,190 million yen and there was an operating profitof 218 million yen compared with a loss of 3,242 million yen one year earlier.
Anniversaire and Bridal Business
There are many activities in this business that utilize the internet and social networking services for efficiently
attracting customers as one way to make sales activities even more effective. This business is also holding bridal
fairs. In addition, by listening to the wishes of customers, this business upgraded wedding styles and items forchapel weddings, family weddings, photo-only weddings and other types of weddings.
Sales declined 2.2% year on year to 4,208 million yen and there was an operating loss of 29 million yen comparedwith a loss of 148 million yen one year earlier.
Entertainment Business
KAIKATSU CLUB café complexes continued to provide guests with original Terashima Bunko videos and promote
the “An Office Anywhere in Japan” project, which includes free access to the e-versions of selected newspapers andother content that is useful for business activities. For new menu items, cafés launched a new KAIKATSU Autumn
Gourmet menu, added “abura soba (oiled ramen noodles)” by Mita Seimenjo, and used other measures. COTE
D’AZUR karaoke facilities upgraded services for families with measures such as all-you-can-eat soft serve ice
cream and a special campaign for children. FiT24 continued to add new locations as planned, chiefly fitness gyms
that are not combined with other AOKI Group businesses. RUNSYSTEM CO., LTD., a new consolidated subsidiary,
is continuing to work on fully automated self-service store systems and sharing many other types of know-how.
During the first half, KAIKATSU CLUB opened four cafés and FiT24 opened 20 gyms. In addition, due to format
conversions and measures to improve efficiency, six KAIKATSU CLUB cafés and eight COTE D’AZUR karaoke
facilities were closed. As a result, including the 120 JIYU KUKAN café complexes and other locations of
RUNSYSTEM (including 63 franchised stores), the number of locations in this business increased from 708 at theend of the previous fiscal year to 838 at the end of the first half.

2

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

Segment sales and earnings increased because of these measures and benefited from a decline in the negative effectsof the pandemic. Sales in this segment increased 27.9% to 34,555 million yen and operating profit was 1,846 million
yen compared with a profit of 29 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 11.4% to 2,362 million yen mainly because of an increase in the cost of some subleasing
stores and other facilities. Operating profit decreased 6.1% to 407 million yen.
(2) Explanation of Financial Position
1) Balance sheet position
AssetsTotal assets at the end of the second quarter decreased 12,243 million yen from the end of the previous fiscal year to220,765 million yen primarily because of seasonal and other factors.
Current assets decreased 11,251 million yen mainly due to decreases of 6,690 million yen in accounts
receivable-trade caused by seasonal and other factors and 4,119 million yen in cash and deposits. Non-current assets
decreased 992 million yen as property, plant and equipment decreased 712 million yen mainly due to depreciation.
Liabilities
Current liabilities decreased 5,368 million yen from the end of the previous fiscal year. There were decreases of
4,677 million yen in accounts payable-trade mainly due to seasonal factors and 1,944 million yen in accrued income
taxes due to the payment of income taxes. Non-current liabilities decreased 7,222 million yen due to a decrease of
6,947 million yen in long-term borrowings for scheduled repayments.
Net assets
Net assets increased 347 million yen from the end of the previous fiscal year due to an increase of 259 million yen invaluation difference on available-for-sale securities.
2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter decreased 4,119 million yen fromthe end of the previous fiscal year to 33,817 million yen.
Cash flows from operating activities
Net cash provided by operating activities increased 2,006 million yen from one year earlier to 3,208 million yen.
The principal factors were profit before income taxes of 1,296 million yen, depreciation of 4,577 million yen, andincome taxes paid of 2,703 million yen.
Cash flows from investing activities
Net cash used in investing activities decreased 4,596 million yen from one year earlier to 606 million yen. This was
mainly due to the payments of 2,403 million yen for the purchase of property, plant and equipment for new store
openings, renewals and other activities and proceeds from collections of leasehold and guarantee deposits and otherproceeds of 1,582 million yen.
Cash flows from financing activities
Net cash used in financing activities increased 5,082 million yen from one year earlier to 6,721 million yen. Thiswas mainly due to a net increase in short-term borrowings of 2,899 million yen and scheduled repayments oflong-term borrowings of 7,996 million yen and repayments of lease obligations of 1,070 million yen.

3

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
First half sales, operating profit, ordinary profit and profit attributable to owners of parent were all higher than
anticipated in relation to the forecasts for the fiscal year.
Based on results of operations in the first half and revisions to the second half outlook to reflect changes in foreignexchange rates, the higher cost of raw materials and other items, the fiscal year forecast announced on May 12, 2022
has been revised. For more information, please see “Revisions to Consolidated Earnings Forecasts and Year-end
Dividend Forecast for the Fiscal Year Ending March 31, 2023” that was announced on November 10, 2022.
Our business segment forecasts were also revised as follows.
Business segment forecasts for the fiscal year ending March 31, 2023
FashionAnniversaireand Bridal

Entertainment

Real Estate
Leasing

Consolidated

Million yen

Million yen

Million yen

Million yen

Million yen

Sales

93,2008,800

69,4004,600

172,700

YoY change (%)

105.1

110.3

121.8

103.8

111.5

Segment profit

6,400

300

2,330

700

8,800

YoY change (%)
133.4
394.9
79.2
Note: Segment profit is operating profit. Total segment profit differs from consolidated operating profit because of
consolidation adjustments.

161.7* These forecasts are based on judgments made in accordance with information available to the management at thetime these materials were prepared. Actual results may differ substantially from these forecasts for a number ofreasons.

4

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Millions of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

AssetsCurrent assets
Cash and deposits

37,93733,817

Accounts receivable-trade

11,8085,118

Inventories

18,33018,001

Other

6,481

6,370

Allowance for doubtful accounts

(44)

(46)

74,51363,262

Buildings and structures, net

66,804

66,685Land

30,76031,022Other, net

15,857

15,002

Total property, plant and equipment

113,422

112,710

5,538

6,192

Total current assets
Non-current assets
Property, plant and equipment

Intangible assets
Investments and other assets
Guarantee deposits

6,970

6,735

Leasehold deposit

20,222

19,400Other

12,381

12,518

Allowance for doubtful accounts

(40)

(55)

Total investments and other assets

39,534

38,599158,495

157,502

233,008

220,765

Total non-current assets
Total assets

5

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

(Millions of yen)
Second quarter of FY3/23(As of Sep. 30, 2022)

FY3/22(As of Mar. 31, 2022)
Liabilities
Current liabilities
Accounts payable-trade15,272

10,594

Short-term borrowings

-

3,000

Current portion of long-term borrowings

10,844

12,304

Income taxes payable

2,508

563

Provision for bonuses

1,814

1,680

44

31

Provision for bonuses for directors (and other officers)
Other

13,93010,871

Total current liabilities

44,41539,046

Non-current liabilities
44,31437,367Retirement benefit liability

815

840

Asset retirement obligations

7,680

7,889

Other

8,140

7,632

Total non-current liabilities

60,95153,729105,366

92,776

Share capital

23,282

23,282

Capital surplus

23,87023,036

Retained earnings

82,821

83,673

Treasury shares(3,489)(3,490)Total shareholders’ equity

126,484

126,503

Long-term borrowings

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

235

495

Remeasurements of defined benefit plans

362

324

Total accumulated other comprehensive income

598

819

Share acquisition rights

559

645

Non-controlling interests-20

127,641

127,989

233,008

220,765

Total net assets
Total liabilities and net assets

6

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Millions of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)

Net sales

62,38275,595

Cost of sales

41,33747,704Gross profit

21,04427,890

Selling, general and administrative expenses

24,13925,873Operating profit (loss)(3,094)2,017Interest income

33

32

Dividend income

13

19

Other

70

117

Total non-operating profit

117

168

Interest expenses

188

188

Loss on retirement of non-current assets

74

52

Other

196

268

Non-operating profit

Non-operating expenses

Total non-operating expenses

459

509

(3,436)

1,676

Subsidies for employment adjustment

484

254

Total extraordinary income

484

254

546

634

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Impairment loss
Loss due to temporary closure

1,434

-

Total extraordinary losses

1,980

634

Profit (loss) before income taxes(4,931)

1,296

Income taxes – current

432

529

Income taxes – deferred(1,587)263

Total income taxes(1,154)

793

Profit (loss)(3,776)503

Loss attributable to non-controlling interests

-

(83)

Profit (loss) attributable to owners of parent(3,776)586

7

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Millions of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)(3,776)503

Valuation difference on available-for-sale securities

48

259

Remeasurements of defined benefit plans, net of tax

(4)

(38)

Profit (loss)
Other comprehensive income

Total other comprehensive income
Comprehensive income

43

221

(3,732)724(3,732)

724--

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

8

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(Millions of yen)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)

Profit (loss) before income taxes(4,931)

1,296

Depreciation

4,649

4,577

Impairment loss

546

634

1,434

-

Cash flows from operating activities

Loss due to temporary closure
Increase (decrease) in retirement benefit liability

24

(33)

Interest and dividend income

(47)

(51)

188

188

6,910

6,923

129

486

(4,935)(4,776)278(1,330)

Other

(987)

(1,856)

Subtotal

3,258

6,058

Interest expenses
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accrued consumption taxes

36

41

Interests paid

(189)

(188)

Income taxes paid

(800)

(2,703)

Interest and dividend income received

169-

Payments for loss due to temporary closure(1,272)-

Net cash provided by (used in) operating activities

1,202

3,208

Income taxes refund

Cash flows from investing activities(5,330)(2,403)Purchase of intangible assets

(496)

(262)

Payments for leasehold and guarantee deposits

(212)

(70)

Net decrease (increase) in trust beneficiary rights
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other

652

465

-

82

184

1,582

Net cash provided by (used in) investing activities(5,202)(606)

Net increase (decrease) in short-term borrowings(5,000)2,899

Proceeds from long-term borrowings

9,000

-

Repayments of long-term borrowings(4,409)(7,996)

Repayments of lease obligations
Payments from changes in ownership interests in
subsidiaries that do not result in change in scope of
consolidation
Purchase of treasury shares(1,224)(1,070)

-

(125)

(0)

(0)

Purchase of property, plant and equipment

Cash flows from financing activities

Dividends paid
Net cash provided by (used in) financing activities

(4)

(428)

(1,638)(6,721)(0)(0)

Increase (decrease) in cash and cash equivalents(5,639)(4,119)Cash and cash equivalents at beginning of period

29,94137,937

Cash and cash equivalents at end of period

24,30233,817

Effect of exchange rate change on cash and cash equivalents

9

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/23 (Apr. 1, 2022 – Sep. 30, 2022)
No reportable information.
Additional Information
Accounting estimates for the impact of COVID-19
There have been no significant changes to the key assumptions used in the accounting estimates for the impact of
COVID-19 described in “Notes (Significant Accounting Estimates)” in the Annual Securities Report for the fiscal
year ended March 31, 2022.
Although there are no significant changes, the following revisions have been made to major assumptions involving
the impact of the pandemic on existing store sales in the current fiscal year as a percentage of results of operations in
the fiscal year that ended on March 31, 2019: from 85% to 88% to 86% to 90% in the fashion business; from 87% to92% (café complex 91% to 97% and karaoke 77% to 82%) to 89% to 92% (café complex 92% to 97% and karaoke
80% to 82%) in the entertainment business; and from 96% to 96% to 100% in the ANNIVERSAIRE and bridal
business as well as a revision of estimated sales per couple in this business from 77% of the March 2019 fiscal year
level to a range of 70% to 77%.
Segment Information
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

OthersSubtotal (Note 1)

Total(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Sales
Fashion30,433---30,433-30,433-30,433Bridal

-

4,300

-

-

4,300

-

4,300

-

4,300

Café complex--

23,273-23,273-23,273-23,273

Karaoke

-

-

2,220

-

2,220

-

2,220

-

2,220

Fitness

-

-

1,517

-

1,517

-

1,517

-

1,517

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

-

-

-

23

23

-

23

30,4334,300

27,010-61,74423

61,768-61,768

-

-

-

614

614

-

614

-

614

30,4334,300

27,010614

62,35823

62,382-62,382

0

1

-

1,506

1,508

-

1,508

(1,508)-30,433

4,302

27,0102,120

63,86623

63,890(1,508)62,382External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (3,242)
(148)
29
433
(2,927)9 (2,917)(177)(3,094)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The -177 million yen adjustment to segment profit (loss) includes 1,792 million yen in elimination for inter-segment
transactions, and -1,970 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 toreportable segments.
3. Segment profit (loss) is adjusted with operating loss on the quarterly consolidated statement of income.

10

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2023

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Fashion Business, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores set to be closed or converted, or expected to remain in the red, for which there islittle expectation of recovery; impairment losses of 256 million yen, 288 million yen and 1 million yen were booked
respectively in the first six months of FY3/22.
First six months of FY3/23 (Apr. 1, 2022 – Sep. 30, 2022)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

OthersSubtotal (Note 1)

Total(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Sales
Fashion36,190---36,190-36,190-36,190Bridal

-

4,202

-

-

4,202

-

4,202

-

4,202

Café complex--

27,054-27,054-27,054-27,054

Karaoke

-

-

4,698

-

4,698

-

4,698

-

4,698

Fitness

-

-

2,428

-

2,428

-

2,428

-

2,428

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

330

-

330

12

342

-

342

36,1904,202

34,512-74,904

12

74,917-74,917

-

-

20

657

677

-

677

-

677

36,1904,202

34,532657

75,582

12

75,595-75,595

-

6

23

1,704

1,734

28

1,762

(1,762)-

36,1904,208

34,5552,362

77,31640

77,357(1,762)75,595External sales
Inter-segment sales
and transfers
Total

Segment profit (loss)
218
(29)
1,846
407
2,443
1
2,444
(427)
2,017
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The -427 million yen adjustment to segment profit (loss) includes 2,015 million yen in elimination for inter-segment
transactions, -38 million yen in amortization of goodwill, and -2,405 million yen in company-wide costs that cannot beallocated to any specific reportable segments. Company-wide costs mainly include administration expenses of theCompany that cannot be attributed to reportable segments.
3. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Fashion Business, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores set to be closed or converted, or expected to remain in the red, for which there islittle expectation of recovery; impairment losses of 31 million yen, 595 million yen and 8 million yen were booked
respectively in the first six months of FY3/23.
Significant change in goodwill
Goodwill was booked in the Entertainment Business segment as the Company has acquired the share of
RUNSYSTEM CO., LTD. and included this company in the scope of consolidation. The event caused an increase of
goodwill by 777 million yen for the first six months of FY3/23.

* 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 of readers
who prefer an English translation.

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