November 5, 2021

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2022
(Six Months Ended September 30, 2021)[Japanese GAAP]
Listings: TSE First Section
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://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 8, 2021
Scheduled date of payment of dividend:
December 2, 2021
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 5, 2021 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, 2021
(April 1, 2021 – September 30, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toSales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Six months ended Sep. 30, 2021
62,382
11.5(3,094)(3,436)(3,776)Six months ended Sep. 30, 2020
55,952 (32.4)(11,885)(12,397)(9,661)
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2021:(3,732) (-%)
Six months ended Sep. 30, 2020:(9,694) (-%)

Six months ended Sep. 30, 2021
Six months ended Sep. 30, 2020

Net income per
share
Yen
(44.51)(114.04)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
223,816
121,398
As of Sep. 30, 2021
237,260
125,850
As of Mar. 31, 2021
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2021: 120,936

Equity ratio
%
54.0
52.9
As of Mar. 31, 2021: 125,487

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/21
10.00
FY3/22
5.00
FY3/22 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None-

Year-end
Yen

Total
Yen
0.00

10.00

5.00

10.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)(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
156,500
9.3
5,000
4,100
1,300
15.32
Note: Revisions to the most recently announced consolidated forecast: Yes
The sales forecast has been revised. Please refer to “(3) Explanation of Consolidated Forecast and Other Forward-looking
Statements” on page 4 of the attachments 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 “Changes in Accounting Policies” on page 10 of the attachments for further information.

(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, 2021:

87,649,504 shares

As of Mar. 31, 2021:

90,649,504 shares

As of Mar. 31, 2021:

5,853,274 shares

Six months ended Sep. 30, 2020:

84,727,303 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2021:

2,746,304 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2021:

84,842,039 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 Friday, November 5, 2021.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by telephone conference on Friday,
November 19, 2021. Materials to be distributed at this event will be available on the Company’s website on the morning of themeeting.

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

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. 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

Changes in Accounting Policies

10

Additional Information

11

Segment Information

11

1

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the COVID-19 pandemic continued to have an impact on the Japanese
economy. Extensions and expansions of states of emergency and measures to prevent infections restricted economic
activity. Some businesses were required to suspend operations or reduce operating hours. Although the severity ofthe pandemic is currently declining as more people are vaccinated, the outlook for the economy remains uncertain
due to the risk of another wave of infections.
Due to the activities explained in the following section that were accompanied by measures to prevent the spread of
infections, the impact of the pandemic was less than one year earlier. Net sales increased 11.5% year-on-year to62,382 million yen, and operating loss was 3,094 million yen compared with a loss of 11,885 million yen one year
earlier. There was an ordinary loss of 3,436 million yen compared with a loss of 12,397 million yen one year earlier.
Loss attributable to owners of parent was 3,776 million yen compared with a loss of 9,661 million yen one year
earlier.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the first quarter of the current fiscal year. The application of this standard reduced
first half net sales by 1,917 million yen and decreased operating loss and ordinary loss by 281 million yen each.
Operating results by segment are as follows.
Fashion Business
One major activity in this business was the expansion of the men’s and women’s lineups of pajama suits, which
combing the comfort of pajamas and fashionable styling of suits. Pajama suits have been very popular since theirlaunch. This business also expanded operations involving innerwear and other apparel associated with pajama suits.
For working women, activities in this business focused on mix-and-match apparel sets, jackets and pants, which are
comfortable as well as easy to wash, wrinkle resistant and stretchable. We also strengthened the lineup of innerwear
items for many uses that can also be mixed and matched. During the first half of the fiscal year, one ORIHICA store
was opened and six AOKI stores and four ORIHICA stores were closed to improve the efficiency of this business.
There were 620 stores at the end of the first half (one combined AOKI/Size MAX store has been changed tocounting each format separately) compared with 628 at the end of the previous fiscal year.
Although there were many activities during the fiscal year’s first half in this business, performance was affected bystates of emergency and other responses to the pandemic expanded to more areas of Japan. As a result, sales in thissegment decreased 3.3% to 30,433 million yen and operating loss was 3,242 million yen, compared with a loss of
4,797 million yen one year earlier, mainly due to reduction in SG&A expenses.
Anniversaire and Bridal BusinessAt all locations in this business, employees continued to focus on rigorous activities to prevent infections. These
activities made it possible for customers to hold weddings and receptions with confidence about the safety of these
events. This business offers weddings and services to reflect new life styles. During the first half, the number of
weddings held by this business since the start of operations in 1998 surpassed 100,000. To mark thisaccomplishment, Anniversaire started the “Kiseki” 100,000 couples appreciation fair. At the end of the first half,
there were 11 locations in this business, down from 12 at the end of the previous fiscal year because the Tokyo Bay
location closed in September due to the end of the lease at the building it occupied.
The performance of this segment improved because of these measures and the higher number of weddings during thefirst half compared to one year earlier when there were no weddings and receptions between April 7 and May 31,
2020. First half performance also benefited from a small decline in the negative effects of the pandemic. As a result,sales increased 156.2% to 4,302 million yen and there was an operating loss of 148 million yen compared with a
2,640 million yen loss one year earlier.
Entertainment BusinessThis business continued to operate while taking many steps to protect customers during the pandemic although somelocations temporarily closed. KAIKATSU CLUB café complexes used numerous measures to attract a broader
2

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

spectrum of customers and give people reasons to visit more frequently. Cafés continued to enlarge the types ofcontent provided to customers and stepped up joint campaigns with other companies and public relations activities.
FiT24 continued to open many new self-service fitness clubs. Growth is also backed by the ability to give customers
access to KAIKATSU CLUB cafés, a benefit no other fitness club can match. During the first half, we opened 19
KAIKATSU CLUBs and 18 FiT24 locations. 17 KAIKATSU CLUBs and four COTE D’AZURs were closed forconversions and other measures to improve efficiency. As a result, there were 675 locations in this segment at theend of the first half compared with 659 at the end of the previous fiscal year.
The performance of this segment improved because of these measures and benefited from a decline in the negative
effects of the pandemic. Sales in this segment increased 21.9% to 27,010 million yen and operating profit was 29
million yen compared with a loss of 4,984 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 9.8% to 2,120 million yen mainly because of an increase in the subleasing of stores andother facilities that were closed. Operating profit increased 16.5% to 433 million yen.
Information about the application of the accounting standard for revenue recognition, etc. and the effect of thisstandard for each business segment is shown in “Changes in Accounting Policies” on page 10 and “Segment
Information, First six months of FY3/22, 3. Information related to revisions for reportable segments” on page 12.
(2) Explanation of Financial Position
1) Balance sheet position
AssetsTotal assets at the end of the second quarter decreased 13,444 million yen from the end of the previous fiscal year to
223,816 million yen mainly due to seasonal factors.
Current assets decreased 14,183 million yen from the end of the previous fiscal year. There was a decrease of 6,910
million yen in accounts receivable-trade due to seasonal factors and 5,639 million yen in cash and deposits.
Non-current assets increased 739 million yen from the end of the previous fiscal year as there was an increase inother under investments and other assets which includes deferred tax assets.
Liabilities
Current liabilities decreased 9,010 million yen from the end of the previous fiscal year. There was decreases of 4,935
million yen in accounts payable-trade mainly due to seasonal factors and electronically recorded
obligations-operating of 2,660 million yen. Non-current liabilities increased 18 million yen. There was an increaseof 431 million yen in long-term borrowings mainly due to a 9,000 million yen of long-term new loan and scheduled
repayment.
Net assets
Net assets decreased 4,452 million yen from the end of the previous fiscal year. There was a decrease of 4,666
million yen in retained earnings due to a loss attributable to owners of parent and the application of the accounting
standard for revenue recognition, etc.
2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter decreased 5,639 million yen overthe end of the previous fiscal year to 24,302 million yen.
Cash flows from operating activities
Net cash provided by operating activities was 1,202 million yen (compared with net cash used of 8,719 million yen
one year earlier). The principal factors were loss before income taxes of 4,931 million yen and a decrease in trade
payables of 4,935 million yen, while there were depreciation of 4,649 million yen and a decrease in trade receivablesof 6,910 million yen.
3

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

Cash flows from investing activities
Net cash used in investing activities increased 2,362 million yen to 5,202 million yen on a year-on-year basis. Thiswas mainly due to the payments of 5,330 million yen for the purchase of property, plant and equipment for new store
openings, renewals and other factors.
Cash flows from financing activities
Net cash used in financing activities was 1,638 million yen (compared with net cash provided of 21,496 million yen
one year earlier). This was mainly due to proceeds from long-term borrowings of 9,000 million yen, while there
were repayments of short-term borrowings of 5,000 million yen, scheduled repayment of long-term borrowings of
4,409 million yen and repayments of lease obligations of 1,224 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
First half sales were somewhat low in relation to the fiscal year forecast and the loss attributable to owners of parent
was slightly high in relation to this forecast.
The fiscal year sales forecast announced on May 13, 2021 has been revised based on first half performance and areview of store openings and closings in all businesses, plans for expenses and other items. There are no revisions to
the forecasts for operating profit, ordinary profit and profit attributable to owners of parent. The decision to leavethese forecasts unchanged reflects current market conditions and the uncertain outlook about the effects of thepandemic on business operations of the AOKI Group and economic activity in Japan. The initial fiscal year store
opening plan has been revised by reducing from three to two the number of new locations in the fashion businessand reducing from 93 to 74 the number of new locations in the entertainment business.
Consolidated forecasts for the fiscal year ending March 31, 2022 (April 1, 2021 – March 31, 2022)
OperatingprofitSales

Ordinary
profitProfit attributableto owners of parent

Net income
per share

Million yen

Million yen

Million yen

Million yen

Yen

169,350

5,000

4,100

1,300

15.33

156,500

5,000

4,100

1,300

15.32

Previous forecast (A)(announced on May 13, 2021)
Forecast (B)Change (B - A)

(12,850)

0

0

0

(7.6)

0.0

0.0

0.0

143,169

ሺ5,793)

ሺ6,606)

ሺ11,931)ሺ140.77)

Real Estate
Leasing

Consolidated

Percentage change (%)(Reference) Previous fiscal year
(ended March 31, 2021)

In our business segment, sales forecasts were also revised as follows.
Business segment forecasts for the fiscal year ending March 31, 2022
FashionAnniversaireand Bridal

Entertainment

Million yen

Million yen

Million yen

Million yen

Million yen

Sales

85,4009,700

60,0004,270

156,500

YoY change (%)

100.0

120.7

123.7

110.1

109.3

Segment profit

3,000

300

1,500

850

5,000

YoY change (%)
200.1
125.2
Note: Segment profit is operating profit. Total segment profit differs from consolidated operating profit because of
consolidation adjustments.

* 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, 2022

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/21(As of Mar. 31, 2021)(Millions of yen)
Second quarter of FY3/22(As of Sep. 30, 2021)

AssetsCurrent assets
Cash and deposits

29,941

24,302

Accounts receivable-trade

10,686

3,775

Inventories

20,112

19,982

Other

7,152

5,645

Allowance for doubtful accounts

(40)

(37)

67,85253,669Buildings and structures, net

68,87568,556

Land

36,13836,117

Other, net

17,755

17,380Total property, plant and equipment

122,769

122,054

5,505

5,624

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

Intangible assets
Investments and other assets
Guarantee deposits

7,409

7,350

Leasehold deposit

20,752

20,580Other

13,011

14,576

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,13342,467

169,407

170,146

237,260

223,816

Total non-current assets
Total assets

5

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

(Millions of yen)
Second quarter of FY3/22(As of Sep. 30, 2021)

FY3/21(As of Mar. 31, 2021)
Liabilities
Current liabilities
Accounts payable-trade

14,241

9,305

Electronically recorded obligations-operating

2,660

-

Short-term borrowings

11,0006,000

Current portion of long-term borrowings

5,418

9,577

Income taxes payable

679

234

Provision for bonuses

1,013

1,268

-

40

Other

12,82912,405

Total current liabilities

47,842

38,83145,914

46,345

Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings

320-

Retirement benefit liability

1,192

1,224

Asset retirement obligations

7,560

7,653

Other

8,580

8,363

Total non-current liabilities

63,567

63,585

111,409

102,417

Share capital

23,282

23,282

Capital surplus

27,74723,870Retained earnings

81,571

76,905

Treasury shares(7,438)(3,489)Total shareholders’ equity

125,162

120,568

Valuation difference on available-for-sale securities

251

300

Remeasurements of defined benefit plans

72

67

Total accumulated other comprehensive income

324

367

Provision for point card certificatesTotal liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

6

363

462

125,850

121,398

237,260

223,816

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

(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 FY3/21(Apr. 1, 2020 – Sep. 30, 2020)(Millions of yen)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)

Net sales

55,95262,382

Cost of sales

42,18741,337Gross profit

13,76521,044

Selling, general and administrative expenses

25,651

24,139Operating loss

(11,885)(3,094)

Interest income

32

33

Dividend income

16

13

Other

123

70

Total non-operating profit

172

117

Interest expenses

173

188

Loss on retirement of non-current assets

317

74

Other

193

196

Non-operating profit

Non-operating expenses

Total non-operating expenses

685

459

(12,397)(3,436)

Gain on sale of investment securities

4-

Subsidies for employment adjustment

563

484

Total extraordinary income

568

484

Impairment loss

539

546

Loss on valuation of investment securities

70

-

1,989

1,434

Ordinary loss
Extraordinary income

Extraordinary losses

Loss due to temporary closure
Total extraordinary losses
Loss before income taxes

2,599

1,980

(14,429)(4,931)

Income taxes - current

268

432

Income taxes - deferred(5,035)(1,587)

Total income taxes(4,767)(1,154)Loss(9,661)(3,776)

Loss attributable to owners of parent(9,661)(3,776)

7

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)(Millions of yen)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(9,661)(3,776)

Valuation difference on available-for-sale securities

(64)

48

Remeasurements of defined benefit plans, net of tax

32

(4)

Loss
Other comprehensive income

Total other comprehensive income
Comprehensive income

(32)

43

(9,694)(3,732)(9,694)(3,732)--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, 2022

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)(Millions of yen)First six months of FY3/22(Apr. 1, 2021 – Sep. 30, 2021)(14,429)(4,931)

Depreciation

4,381

4,649

Impairment loss

539

546

1,989

1,434

Cash flows from operating activities
Loss before income taxes

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

85

24Interest and dividend income

(49)

(47)

Interest expenses

173

188

Loss (gain) on sales of investment securities(4)-

Decrease (increase) in trade receivables

4,359

6,910

Decrease (increase) in inventories

1,528

129

Increase (decrease) in trade payables(5,268)(4,935)

Increase (decrease) in accrued consumption taxes

(664)

278

Other

(886)

(987)

Subtotal(8,244)

3,258

39

36

Interests paid

(164)

(189)

Income taxes paid

(616)

(800)

Interest and dividend income received

Income taxes refund

1,933

169

Payments for loss due to temporary closure(1,667)(1,272)

Net cash provided by (used in) operating activities(8,719)1,202(2,641)(5,330)Purchase of intangible assets

(321)

(496)

Payments for leasehold and guarantee deposits

(709)

(212)

Cash flows from investing activities
Purchase of property, plant and equipment

69-

Net decrease (increase) in trust beneficiary rights

1,050

652

Other

(287)

184

(2,839)(5,202)

Net increase (decrease) in short-term borrowings

16,000(5,000)

Proceeds from long-term borrowings

11,0009,000

Repayments of long-term borrowings(2,409)(4,409)

Repayments of lease obligations(1,148)(1,224)

Proceeds from sales of investment securities

Net cash provided by (used in) investing activities
Cash flows from financing activities

(0)

(0)

Dividends paid

(1,945)(4)

Net cash provided by (used in) financing activities

21,496(1,638)Purchase of treasury shares

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

9,937(5,639)Cash and cash equivalents at beginning of period

23,84329,941

Cash and cash equivalents at end of period

33,781

24,302

Effect of exchange rate change on cash and cash equivalents

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AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/22 (Apr. 1, 2021 – Sep. 30, 2021)
No reportable information.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the first quarter of the current fiscal year. Based on this standard, revenue expected
to be received in exchange for the provision of goods and services is recognized when the control of the promised
goods and services is transferred to customers. In the Fashion Business, in prior years expected expenses for the
future exchanges of loyalty points concerning products and services were recorded as an allowance. Due to this new
accounting standard, in cases where these points give customers a significant right, the points are categorized as aperformance obligation to provide goods or services and the recognition of revenue is deferred. For apparel andother items in the ANNIVERSAIRE and Bridal Business and gift cards and other items in the Entertainment
Business, the total amounts of these items were recognized as revenue in prior years. Due to this new accounting
standard, these are classified as items that perform a role in the provision of goods and services to customers(directly or to an agent). As a result, the net rather than gross amounts of these items are now recognized as revenue.
For the application of the accounting standard for revenue recognition, etc., in accordance with the transitional
treatment in the proviso to paragraph 84 of this standard, the cumulative effect of the retrospective application of the
new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or subtracted
from retained earnings at the beginning of the first quarter of the current fiscal year. The new standard is thenapplied beginning with this amount of retained earnings. However, the Company has applied the method prescribedin paragraph 86 of this standard and has not retrospectively applied the new accounting policy to contracts in whichalmost all revenue were recognized in accordance with the previous treatment prior to the beginning of the firstquarter of the current fiscal year.
As a result, net sales decreased 1,917 million yen, cost of sales decreased 2,175 million yen, and selling, general andadministrative expenses decreased 22 million yen. Operating loss, ordinary loss and loss before income taxes
declined 281 million yen each in the first half of the current fiscal year. In addition, there was a decrease of 889
million yen in retained earnings at the beginning of the current fiscal year.
Due to the application of the revenue recognition accounting standard, etc., the provision for point card certificatesthat was presented in the non-current liabilities section of the consolidated balance sheet in the previous fiscal year
is, from the first quarter of the current fiscal year, presented as an option to acquire additional goods or services,with a portion of the transaction price allocated to the option and the contractual liability included in the other undercurrent liabilities until expired due to use or expiration. In accordance with the transitional treatment prescribed inparagraph 89-2 of the accounting standard for revenue recognition, no reclassification has been made to the prioryear’s consolidated financial statements to conform to the new presentation. Furthermore, in accordance with thetransitional treatment prescribed in paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting(ASBJ Statement No. 12, March 31, 2020), the Company has not presented information on revenue from contracts
with customers broken down for the first half of the previous fiscal year.

10

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

Application of the Accounting Standard for Fair Value Measurement, etc.
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4,2019), etc. from the beginning of the first quarter of the current fiscal year, and has applied the new accounting
policies set forth by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with thetransitional treatment in the paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effectof the application of these standards on the quarterly consolidated financial statements.
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, 2021.
Assumptions for existing store sales in the current fiscal year in relation to sales in the fiscal year ended March 31,
2019, when there was no pandemic, are among the major assumptions in this Annual Securities Report. We haverevised the lower end of these sales assumptions to 81% of March 2019 fiscal year sales in the fashion business andthe entertainment business. There is no change in the assumption for sales per couple in the Anniversaire and bridal
business.
Segment Information
First six months of FY3/21 (Apr. 1, 2020 – Sep. 30, 2020)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
Others(Note
1)
Subtotal(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

31,4801,678

22,156575

55,891

61

55,952-

55,952

0

0

-

1,355

1,355

-

1,355

(1,355)-31,4801,679

22,156

1,930

57,247

61

57,308(1,355)55,952

Total

Sales
External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (4,797)(2,640)(4,984)372 (12,049)
46 (12,002)
116(11,885)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The 116 million yen adjustment to segment profit (loss) includes 2,164 million yen in elimination for inter-segment
transactions, and -2,047 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.

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 and the Entertainment Business, impairment losses were recognized for operating stores set
to be closed or converted, or expected to remain in the red, for which there is little expectation of recovery andexpected to remain in the red; impairment losses of 117 million yen and 422 million yen were booked respectively inthe first six months of FY3/21.

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AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2022

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
OthersSubtotal (Note 1)

Total

-

30,433(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

Fashion30,433---Bridal

-

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)62,382

Sales

External sales
Inter-segment sales
and transfers
Total

30,433-30,433

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.

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.
3. Information related to revisions for reportable segments
As described in Changes in Accounting Policies, the Company has applied the Accounting Standard for Revenue
Recognition, etc. from the beginning of the first quarter of FY3/22 and changed the accounting method for revenue
recognition. Accordingly, the method for calculating segment profit or loss has been changed as well.
Compared with the previous method, net sales increased 280 million yen and segment loss decreased 330 million
yen in the Fashion Business in the first six months of FY3/22. Net sales decreased 1,940 million yen and there were
no effect on segment loss in the Anniversaire and Bridal Business. In the Entertainment Business, net sales
decreased 256 million yen and segment profit decreased 49 million yen.

* 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.

12