November 10, 2016

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2017
(Six Months Ended September 30, 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 filing of Quarterly Report:
November 11, 2016
Scheduled date of payment of dividend:
December 5, 2016
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, 2016 at 14:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2016
(April 1, 2016 – September 30, 2016)(Percentages represent year-on-year changes)(1) Consolidated results of operations
Sales

Operating profit

Million yen%
Million yen%
Six months ended Sep. 30, 2016
82,6561.2
660 (82.1)
81,704
4.5
3,681
46.4
Six months ended Sep. 30, 2015
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2016:
Six months ended Sep. 30, 2015:

Six months ended Sep. 30, 2016
Six months ended Sep. 30, 2015

Net income per share
Yen
1.72
23.80

Ordinary income
Million yen%
508 (86.0)
3,620
44.6
132 (down 93.8%)
2,135 (up 4.0%)

Profit attributable toowners of parent
Million yen%
152 (92.9)
2,157
48.8

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Sep. 30, 2016
221,473
139,526
As of Mar. 31, 2016
230,363
142,926
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2016:
139,438

Equity ratio
%
63.0
62.0
As of Mar. 31, 2016: 142,838

2. Dividends
1Q-endYen

2Q-end
Yen
20.00
21.00

FY3/16
FY3/17
FY3/17 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

Year-end
Yen
20.00

-

22.00

Total
Yen
40.00
43.00

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

Operating profit

Ordinary income(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
8,800
(9.4)
99.48

Million yen%
Million yen%
Million yen%
Full year
196,270
4.1
15,800(11.2)
15,500(12.1)
Note: Revisions to the most recently announced consolidated forecast: Yes
Please refer to “(3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 for further
information.

* 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:

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

None4) Restatements:

None

Note: Please refer to “2. Matters Related to Summary Information (Notes)” on page 5 for further information.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Sep. 30, 2016:

90,649,504 shares

As of Mar. 31, 2016:

90,649,504 shares

As of Mar. 31, 2016:

984,762 shares

2) Number of shares of treasury stock at the end of the period
As of Sep. 30, 2016:

2,617,204 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2016:

88,824,724 shares

Six months ended Sep. 30, 2015:

90,635,763 shares

Note 1: Information regarding the implementation of quarterly review procedures
The current quarterly summary report is not subject to the quarterly review procedures based on the Financial Instruments andExchange Act. At the time of disclosure, the review procedures for the quarterly 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 “(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.
Disclosure of the financial results meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts on Friday, November 18, 2016.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance

Pages
2

(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. Matters Related to Summary Information (Notes)

5

Changes in Accounting Policies and Accounting-based Estimates, and Restatements

5

3. Quarterly Consolidated Financial Statements

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

8

Quarterly Consolidated Statement of Income

8

Quarterly Consolidated Statement of Comprehensive Income

9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

11

Going Concern Assumption

11

Significant Changes in Shareholders’ Equity

11

Segment and Other Information

11

1

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the Japanese economy remained lackluster due mainly to yen appreciation,
lower share prices and overseas economic downturn although there were improvements in the employment andincome situation. Consumer spending was sluggish as higher food prices made consumers more budget-minded.
During the first half, the AOKI Group implemented various measures in all business segments as discussed below.
Sales increased 1.2% year-on-year to 82,656 million yen, but operating profit decreased 82.1% to 660 million yen.
Ordinary income decreased 86.0% to 508 million yen and profit attributable to owners of parent decreased 92.9% to152 million yen.
Operating results by segment are as follows.
Fashion Business
AOKI strengthened to offer ideas for functional apparel, including the lines of Truly Washable Suits and High-Spec
No-Iron Shirts with greater design variations. There were also measures to further enlarge the selection of women’s
apparel, such as expanding a line of office-casual items for working women. Moreover, about 100 stores wereextensively refurbished, in order to improve the store environment from the standpoint of medium to long-term
growth. Three new stores were opened, including at shopping centers, while five stores were closed for relocationand other reasons. As a result, there were 565 stores at the end of the second quarter compared with 567 stores at theend of the previous fiscal year.
ORIHIKA strengthened the lineup of offerings in THE 3rd SUITS and the Super No-Iron Shirt brands, byintroducing business and business casual styles in the Cool Biz category. In the ladies’ category, ORIHIKA launched
the selection of pants & skirts and shirts & blouses for mixing and matching, ideal wear at turn of seasons andmatching. During the first half, the number of stores remained at 144 because ORIHICA opened one store andclosed one store.
Sales benefited from the strong existing store sales and increased 2.5% to 45,811 million yen. Operating loss was
1,816 million yen, compared with 137 million yen loss in the same period of the previous fiscal year, mainly becauseof a lower gross profit margin resulting from a sale associated with store remodeling as well as a sharp increase in
selling, general and administrative expenses due to the remodeling.
Anniversaire and Bridal Business
ANNIVERSAIRE INC., the operator of guesthouse-style wedding and reception facilities, refurbished two of its
facilities to cope with diversifying wedding needs and emerging new trends and to give full play to the uniquefeatures of each of the facilities in sales promotion and advertising activities. Despite all these activities, affected inpart by adverse market conditions, the number of couples married at ANNIVERSAIRE wedding facilities decreased.
Sales decreased 13.8% to 12,908 million yen and operating profit decreased 54.9% to 831 million yen.
Karaoke Facility Operations Business
VALIC Co., Ltd., which operates karaoke facilities, continued marketing campaigns using tie-ups with popularartists and characters. Furthermore, there were investments to reinvigorate existing locations. For example, theselection of seasonal menu items was expanded and 16 locations were remodeled to add more “concept rooms” andmake other improvements. During the first half, the number of locations increased by five to 188 as we opened six
locations and closed one location.
Although the new locations contributed to sales, intense competition impacted the performance of existing karaoke
facilities. As a result, sales increased 1.4% to 8,856 million yen and operating profit decreased 92.1% to 38 million
yen.

2

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

Café Complex Operations Business
VALIC Co., Ltd., which also operates café complexes, continued to work on improving the performance of existing
locations. 12 facilities were renovated with the efforts to increase the selection of seasonal menu items, expand theselection of amusement content, add sections exclusively for women, and make other upgrades. Moreover, toenhance safety and convenience, the operating systems of all personal computers at its facilities were upgraded toWindows 10, a first in the industry. We actively opened 21 facilities, and closed one location due to termination ofcontract during the first half, raising the number of facilities from 295 to 315 at the end of the second quarter.
Sales increased 13.3% to 15,094 million yen and operating profit decreased 5.7% to 1,274 million yen due mainly to
an increase in personnel expenses for securing store staffs.
(2) Explanation of Financial Position
1) Balance sheet position
AssetsTotal assets at the end of the second quarter under review decreased 8,889 million yen from the end of the previous
fiscal year to 221,473 million yen.
Current assets decreased 10,442 million yen from the end of the previous fiscal year. Although inventories increased
812 million yen due to new store openings, cash in hand and in banks decreased 5,123 million yen mainly due tocapital expenditures and payment of income taxes, accounts receivable-trade decreased 6,179 million yen due toseasonal reasons and other factors. Fixed assets increased 1,552 million yen from the end of the previous fiscal year
as tangible fixed assets increased 3,092 million yen due to new store openings, renewals and other factors, whileother investments and other assets decreased 1,619 million yen due mainly to sales of investment securities.
Liabilities
Current liabilities decreased 2,224 million yen from the end of the previous fiscal year. Although there was anincrease of 2,800 million yen in current portion of long-term debt, there was a 3,899 million yen decrease inaccounts payable-trade due to seasonal reasons and other factors, as well as a 1,511 million yen decrease in accrued
income taxes due to the payment of income taxes among other reasons. Long-term liabilities decreased 3,265 million
yen due mainly to a decrease of 3,825 million yen in long-term debt due to its scheduled repayment and otherfactors.
Net assets
Net assets decreased 3,399 million yen from the end of the previous fiscal year. There was a decrease of 1,529
million yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus, and anincrease of 1,848 million yen in treasury stock due to the purchase.
2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter under review decreased 5,123
million yen over the end of the previous fiscal year to 22,436 million yen.
Cash flows from operating activities
Net cash provided by operating activities was 2,375 million yen (compared with net cash used of 2,113 million yen
one year earlier). The principal factors include depreciation and amortization of 3,898 million yen and a decrease of
6,179 million yen in accounts receivable-trade, while there was a decrease of 3,899 million yen in accounts
payable-trade and income taxes paid of 3,706 million yen.

3

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

Cash flows from investing activities
Net cash used in investing activities was 2,424 million yen (a decrease of 628 million yen from one year earlier).
This was mainly due to the payments of 3,907 million yen for the acquisition of tangible fixed assets related to newstore openings and renewals, while there were proceeds of 2,068 million yen from the sales of investment securities.
Cash flows from financing activities
Net cash used in financing activities was 5,074 million yen (an increase of 3,307 million yen from one year earlier).
The principal factors were scheduled repayment of long-term debt of 1,025 million yen, payments for the purchaseof treasury stock of 1,848 million yen, and dividends paid of 1,795 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The results of operations in the first half under review were generally in line with the forecast.
We have revised the fiscal year sales and ordinary income forecasts announced on May 12, 2016. There are several
reasons for this revision: current performance trends, economic and market conditions in Japan, and a reexaminationof the fiscal year store opening plan and expense plan in each business. We have changed the store-opening plansfrom 13 at the beginning of the fiscal year to 18 stores for the Fashion Business and from 44 to 52 facilities for the
Café Complex Operations Business.
Consolidated forecast for the fiscal year ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Sales

Operating profit

Ordinary income

Profit attributableto owners of parent(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

Net income per
share
(Yen)

Previous forecast (A)(announced on May 12, 2016)

194,600

15,80015,700

8,800

98.92

Revised forecast (B)

196,270

15,80015,500

8,800

99.48

1,670

-

(200)

-

Percentage change (%)

0.9

-

(1.3)

-

Previous fiscal year
(ended Mar. 31, 2016)

188,594

17,78917,627

9,711

107.55

Change (B - A)

Our business segment forecasts were also revised as follows.
Forecast by business segment for the fiscal year ending March 31, 2017
FashionAnniversaireand Bridal

Karaoke Facility
Operations

Café Complex
Operations

Consolidated(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

(Millions of yen)

119,100

27,40018,90030,900196,270

YoY change (%)

104.5

93.4

103.6

114.2

104.1

Segment profit

9,000

2,800

1,060

2,240

15,800YoY change (%)

91.7

78.0

71.2

97.8

88.8

Sales

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

* Above forecasts are based on judgments made in accordance with information available to the management at thetime this release was prepared, and 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, 2017

2. Matters Related to Summary Information (Notes)
Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
The Company has adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (AccountingStandards Board of Japan (ASBJ) Statement No. 26, March 28, 2016) starting with the first quarter of the current
fiscal year and partially revised its accounting method for determining the recoverability of deferred tax assets.
The Company has applied this implementation guidance in accordance with the transitional accounting treatments
set forth in Paragraph 49 (4) of this implementation guidance. Accordingly, the differences between deferred tax
assets and deferred tax liabilities determined by applying the applicable provisions of Paragraph 49 (3), Items 1
through 3 of the implementation guidance at the beginning of the first quarter of the current fiscal year and deferred
tax assets and deferred tax liabilities at the end of the previous fiscal year are added to retained earnings at the
beginning of the first quarter of the current fiscal year.
The result was an increase of 110 million yen each in deferred tax assets (investments and other assets) and retained
earnings at the beginning of the first quarter of the current fiscal year.

5

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Second quarter of FY3/17(As of Sep. 30, 2016)

FY3/16(As of Mar. 31, 2016)
AssetsCurrent assets
Cash in hand and in banks

27,56022,436

Accounts receivable-trade

9,437

3,257

Inventories

27,83528,647

Other current assets

9,111

9,155

Allowance for doubtful accounts

(45)

(41)

73,89963,456

Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures, net

58,90060,092

Land

36,93436,953

Other tangible fixed assets, net

12,01013,892

Total tangible fixed assets

107,846

110,938

6,680

6,451

Guarantee deposits

8,307

8,311

Leasehold deposit

20,576

20,880

Other investments and other assets

13,093

11,474

Intangible fixed assets
Investments and other assets

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,936

40,626

156,464

158,016

230,363

221,473

Accounts payable-trade

18,021

14,121

Current portion of long-term debt

4,050

6,850

Accrued income taxes

2,669

1,158

Accrued bonuses for employees

1,708

1,810

Total fixed assets
Total assets
Liabilities
Current liabilities

98

61

Other current liabilities

11,70012,022

Total current liabilities

38,24836,02436,27532,450

1,845

1,882

Accrued bonuses for directors and statutory auditors

Long-term liabilities
Long-term debt
Accrued retirement benefits for directors and statutory
auditors
Accrued costs for customer point program

1,014

945

Net defined benefit liability

853

877

Asset retirement obligations

5,109

5,279

Other long-term liabilities

4,090

4,487

Total long-term liabilities
Total liabilities

649,18745,92287,436

81,947

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

(Millions of yen)
Second quarter of FY3/17(As of Sep. 30, 2016)

FY3/16(As of Mar. 31, 2016)
Net assets
Shareholders’ equity
Common stock

23,282

23,282

Capital surplus

27,833

27,833Retained earnings

92,92991,399Treasury stock(1,436)(3,285)

Total shareholders’ equity

142,609139,230

Unrealized gain on securities

612

533

Remeasurements of defined benefit plans

(383)

(325)

Total accumulated other comprehensive income

229

208

87

87

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

7

142,926

139,526

230,363

221,473

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017(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 FY3/16(Apr. 1, 2015 – Sep. 30, 2015)(Millions of yen)First six months of FY3/17(Apr. 1, 2016 – Sep. 30, 2016)

Sales

81,70482,656

Cost of sales

45,51748,313Gross profit

36,18734,342

Selling, general and administrative expenses

32,50533,681

Operating profit

3,681

660

52

49

Non-operating profit
Interest income
Dividend income

103

71

Rental income on real estate

305

305

Other

158

150

Total non-operating profit

620

576

Interest expenses

166

158

Expenses on sub-leased real estate

277

256

Non-operating expenses

Other

237

314

Total non-operating expenses

681

728

3,620

508

-

542

-

542

347

391

Ordinary income
Extraordinary gains
Gain on sales of investment securities
Total extraordinary gains
Extraordinary losses
Impairment loss
Loss on disaster

-

102

347

494

Profit before income taxes

3,272

556

Current income taxes

1,176

1,097

Deferred income taxes

(61)

(693)

Total extraordinary losses

Total income taxes

1,115

403

Profit2,157

152

Profit attributable to owners of parent

2,157

152

8

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/16(Apr. 1, 2015 – Sep. 30, 2015)(Millions of yen)First six months of FY3/17(Apr. 1, 2016 – Sep. 30, 2016)

2,157

152

Unrealized gain on securities

(66)

(79)

Remeasurements of defined benefit plans, net of tax

44

58

Total other comprehensive income

(22)

(20)

2,135

132

2,135

132

-

-

ProfitOther comprehensive income

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

9

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/16(Apr. 1, 2015 – Sep. 30, 2015)(Millions of yen)First six months of FY3/17(Apr. 1, 2016 – Sep. 30, 2016)

Cash flows from operating activities
Profit before income taxes

3,272

556

Depreciation and amortization

3,803

3,898

347

391

(54)

37

(55)

(68)

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

107

112

(156)

(120)

Interest expenses

166

158

-

(542)

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

5,660

6,179

Decrease (increase) in inventories(2,683)(812)

Increase (decrease) in accounts payable-trade(5,320)(3,899)

Increase (decrease) in accrued consumption taxes(2,610)

(646)

Other

(867)

(337)

Subtotal

1,616

4,906

131

97

Interest and dividend income received
Interests paid

(166)

(159)

Income taxes paid

(4,937)(3,706)

Income taxes refund

1,243

1,236

Net cash provided by (used in) operating activities(2,113)

2,375

Payments for acquisition of tangible fixed assets(3,009)(3,907)

Payments for acquisition of intangible fixed assets

(460)

(212)

Payments for leasehold and guarantee deposits

(417)

(865)

-

2,068

780

258

Cash flows from investing activities

Proceeds from sales of investment securities
Net decrease (increase) in trust beneficiary rights
Other
Net cash used in investing activities

52

234

(3,053)(2,424)

3,000-

Cash flows from financing activities
Net increase (decrease) in short-term debt
Proceeds from long-term debt

1,000

-

Repayments of long-term debt

(1,225)(1,025)

Repayments of lease obligations

(995)

(894)

Payments for purchase of treasury stock(1,905)(1,848)Dividends paid

(1,641)(1,795)

Other

-

490

(1,767)(5,074)(0)(0)

Increase (decrease) in cash and cash equivalents(6,933)(5,123)

Cash and cash equivalents at beginning of period

29,226

27,560Cash and cash equivalents at end of period

22,292

22,436

Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents

10

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/17 (Apr. 1, 2016 – Sep. 30, 2016)
Purchase of treasury stock
The Company has purchased 1,632,000 shares of its treasury stock pursuant to the resolution of the Board of
Directors on February 15, 2016. As a result, treasury stock increased 1,848 million yen during the first six months of
FY3/17 to 3,285 million yen.
Segment and Other Information
First six months of FY3/16 (Apr. 1, 2015 – Sep. 30, 2015)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)
Reportable segment
FashionAnniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

Amounts shown on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)

Total

Sales
External sales
Inter-segment sales
and transfers

44,693

14,9608,728

13,321

81,704-81,704

4

17

1

0

23

(23)

-

Total

44,697

14,978

8,730

13,322

81,727(23)

81,704

(137)
1,841
482
1,351
3,539
142
3,681
Segment profit (loss)
Notes: 1. The 142 million yen adjustment to segment profit (loss) includes 2,195 million yen in elimination for inter-segment
transactions, and -2,052 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.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Material impairment losses related to fixed assets
In the Fashion Business, the Karaoke Facility Operations Business and the Café Complex Operations Business,
impairment losses were recognized for operating stores set to be closed for which there is little expectation ofrecovery and had remained in the red; impairment losses of 66 million yen, 133 million yen and 147 million yen
were booked respectively in the first six months of FY3/16.

11

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2017

First six months of FY3/17 (Apr. 1, 2016 – Sep. 30, 2016)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)
Reportable segment
FashionAnniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

Amounts shown on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)

Total

Sales
External sales
Inter-segment sales
and transfers

45,81012,8998,852

15,09482,656-82,656

1

8

4

-

14

(14)

-

Total

45,811

12,908

8,856

15,094

82,671(14)

82,656

Segment profit (loss)(1,816)
831
38
1,274
327
333
660
Notes: 1. The 333 million yen adjustment to segment profit (loss) includes 2,177 million yen in elimination for inter-segment
transactions, and -1,844 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.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Material impairment losses related to fixed assets
In the Fashion Business, the Karaoke Facility Operations Business and the Café Complex Operations Business,
impairment losses were recognized for operating stores set to be closed for which there is little expectation ofrecovery and had remained in the red; impairment losses of 147 million yen, 172 million yen and 71 million yen
were booked respectively in the first six months of FY3/17.

* 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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