August 5, 2021

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2022
(Three Months Ended June 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:
August 6, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on August 5, 2021 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2021
(April 1, 2021 – June 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%
Three months ended Jun. 30, 2021
32,90525.6(1,457)(1,583)(1,738)Three months ended Jun. 30, 2020
(7,566)(7,767)(6,429)26,204 (39.5)
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2021:(1,699) (-%)
Three months ended Jun. 30, 2020:(6,491) (-%)

Three months ended Jun. 30, 2021
Three months ended Jun. 30, 2020

Net income per share
Yen(20.51)(75.94)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
231,349
123,312
As of Jun. 30, 2021
237,260
125,850
As of Mar. 31, 2021
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2021: 122,897

Equity ratio
%
53.1
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
FY3/22 (forecasts)
5.00
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
169,350
18.3
5,000
4,100
1,300
15.33
Note: Revisions to the most recently announced consolidated forecast: None

* 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 9 of the attachments 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 Jun. 30, 2021:

87,649,504 shares

As of Mar. 31, 2021:

90,649,504 shares

As of Mar. 31, 2021:

5,853,274 shares

Three months ended Jun. 30, 2020:

84,675,379 shares

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

2,853,484 shares

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

84,796,139 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, August 5, 2021.

AOKI Holdings Inc. (8214) First 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 Income

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Changes in Accounting Policies

9

Additional Information

10

Segment Information

10

1

AOKI Holdings Inc. (8214) First 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 quarter of the current fiscal year, the COVID-19 pandemic continued to have an impact on the Japanese
economy. Economic activity was restricted somewhat by a state of emergency, measures to prevent infections andother activities involving this crisis. Some businesses were required to suspend operations or reduce operating hours.
Although there is progress with vaccinations in Japan, the outlook for the economy remains uncertain because there
are still no signs of when this crisis will end.
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 in all business segments. Net sales increased
25.6% year-on-year to 32,905 million yen, and operating loss was 1,457 million yen compared with a loss of 7,566
million yen one year earlier. There was an ordinary loss of 1,583 million yen compared with a loss of 7,767 million
yen one year earlier. Loss attributable to owners of parent was 1,738 million yen compared with a loss of 6,429
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 quarter net sales by 1,015 million yen and decreased operating loss and ordinary loss by 247 million yen each.
Operating results by segment are as follows.
Fashion Business
At AOKI and ORIHICA, there have been consistently strong sales of pajama suits and Active Work Suits since thelaunch of these products. This apparel belongs to the new home and working style sector, which is a new category ofmerchandise for AOKI and ORIHICA. In addition, there were activities to expand the lineups of anti-microbialwashable masks and washable suits for the spring and summer, both products needed during the pandemic, and of
Biz Polo shirts, which is a summer fashion easily matched with other apparel. Another highlight of the first quarter
was the full-scale start of activities to strengthen sales promotions, sales areas and customer services involving
apparel for working women. Activities were linked with innovative apparel such as the Functional Jacket & Set-up
lineup and 360° Kirei Pants. For more progress with the online/offline merger (OMO), all stores have started to offer
the Take Out Service that allows customers to use the internet to review at any time product information that wasreceived at a store and purchase items smoothly. One ORIHICA store was opened and three AOKI stores and three
ORIHICA stores were closed to improve the efficiency of this business. There were 624 stores at the end of the firstquarter (one combined AOKI/Size MAX store has been changed to counting each format separately) compared with
628 at the end of the previous fiscal year.
The performance of this segment improved because of these measures and benefited from a small decline in thenegative effects of the pandemic. As a result, sales in this segment increased 4.6% to 17,364 million yen andoperating loss was 1,169 million yen compared with a loss of 2,944 million yen one year earlier.
Anniversaire and Bridal BusinessAt all locations in this business, employees focused on working closely with customers who revised their wedding
plans due to the pandemic and on rigorous activities to prevent infections. These activities made it possible forcustomers to hold weddings and receptions with confidence about the safety of these events. To reflect new life
styles, this business offers chapel weddings, family weddings, photo weddings and other services. In addition,
Anniversaire and Takami Bridal announced a new line of original dresses in the Arêve collection jointly developedby these two companies.
Due to these activities, the number of weddings during the first quarter was much higher than one year earlier when
there were no weddings and receptions between April 7 and May 31. As a result, sales were 2,455 million yen
compared with 253 million yen one year earlier and there was an operating profit of 97 million yen compared with a
1,324 million yen loss one year earlier.

2

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

Entertainment Business
All locations of this business continued to operate while taking many steps to protect customers during the pandemic.
The opening of the first café in Kochi prefecture completed the expansion of the network of KAIKATSU CLUB café
complexes to all 47 prefectures of Japan. This business continues to use its strategy of establishing a dominantpresence in targeted areas to increase its market share. There were many activities for the invigoration of existingcafés. Content was expanded, such as by distributing original Terashima Bunko videos, and the convenience of the
KAIKATSU CLUB app was increased. Other activities included the launch of a new grand menu and menu items
created jointly with other companies. In the COTE D’AZUR karaoke business, locations started providing a foodserving service for safety during the pandemic along with the launch of a new grand menu. FiT24 self-service fitness
clubs performed well as this business continued to add new locations while using its distinctive strengths to attract
customers. During the first three months, we opened three KAIKATSU CLUBs and 14 FiT24 locations. Six
KAIKATSU CLUBs and three COTE D’AZURs were closed for conversions and other measures to improve
efficiency. As a result, there were 667 locations in this segment at the end of the first quarter 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 41.4% to 12,761 million yen and operating loss was 553
million yen compared with a loss of 3,524 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 8.3% to 1,053 million yen mainly because of an increase in the subleasing of stores andother facilities that were closed. Operating profit increased 27.1% to 248 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 9 and “Segment
Information, First three months of FY3/22, 3. Information related to revisions for reportable segments on page 11.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the first quarter decreased 5,910 million yen from the end of the previous fiscal year to
231,349 million yen mainly due to a decrease in accounts receivable-trade.
Current assets decreased 6,530 million yen from the end of the previous fiscal year. There was a decrease of 5,791
million yen in accounts receivable-trade due to seasonal factors. Non-current assets increased 620 million yen fromthe end of the previous fiscal year as there was an increase of 724 million yen in other under investments and otherassets which includes deferred tax assets.
Liabilities
Current liabilities decreased 10,800 million yen from the end of the previous fiscal year. There was a decrease of
3,358 million yen in accounts payable-trade mainly due to seasonal factors and repayments of short-term borrowingsof 5,000 million yen. Non-current liabilities increased 7,428 million yen due to long-term borrowings of 9,000
million yen.
Net assets
Net assets decreased 2,538 million yen from the end of the previous fiscal year. There was a decrease of 2,628
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.

3

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

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
In the first quarter of the current fiscal year, sales in all business segments were somewhat below the expected paceused for the fiscal year sales forecast. The main causes are the state of emergency and measures to prevent infections
due to the pandemic. First quarter operating profit was also slightly below the expected quarterly pace. There are no
revisions to the fiscal year forecast because of progress with vaccinations, the current level of economic activity inJapan, and uncertainty about the recovery of sales and earnings in all business segments.
For significant accounting estimates for the impact of COVID-19, there are no significant revisions to theinformation about assumptions for the end of this crisis and other items. However, the pace of the recovery in sales
and earnings is currently slower than originally expected.

4

AOKI Holdings Inc. (8214) First 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)First quarter of FY3/22(As of Jun. 30, 2021)

AssetsCurrent assets
Cash and deposits

29,941

Accounts receivable-trade

10,686

4,894

Inventories

20,112

19,028

Other

7,152

6,607

Allowance for doubtful accounts

(40)

(38)

67,852

61,321

Buildings and structures, net

68,87568,361

Land

36,13836,138

Total current assets

30,829Non-current assets
Property, plant and equipment

Other, net

17,75518,365

Total property, plant and equipment

122,769

122,866

5,505

5,466

Guarantee deposits

7,409

7,382

Leasehold deposit

20,752

20,616

Other

13,011

13,736

Intangible assets
Investments and other assets

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,133

41,695

169,407

170,027

237,260

231,349

Total non-current assets
Total assets

5

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

(Millions of yen)First quarter of FY3/22(As of Jun. 30, 2021)

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

14,241

10,882

Electronically recorded obligations-operating

2,660

1,085

Short-term borrowings

11,0006,000

Current portion of long-term borrowings

5,418

4,528

Income taxes payable

679

142

Provision for bonuses

1,013

675

-

20

Other

12,82913,707

Total current liabilities

47,84237,04145,91453,652

Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings

320-

Retirement benefit liability

1,192

1,205

Asset retirement obligations

7,560

7,590

Other

8,580

8,548

Total non-current liabilities

63,56770,996

111,409108,037

Share capital

23,282

23,282

Capital surplus

27,74723,934Retained earnings

81,571

78,942

Treasury shares(7,438)(3,626)

Total shareholders’ equity

125,162

122,534

Valuation difference on available-for-sale securities

251

293

Remeasurements of defined benefit plans

72

70

Total accumulated other comprehensive income

324

363

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

414

125,850

123,312237,260

231,349AOKI Holdings Inc. (8214) First 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 Three-month Period)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)(Millions of yen)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)

Net sales

26,20432,905

Cost of sales

20,165

21,588Gross profit

6,038

11,316

Selling, general and administrative expenses

13,605

12,774

Operating loss

(7,566)(1,457)

Interest income

18

20

Dividend income

1613

Non-operating profit

Other

46

37

Total non-operating profit

81

71

Interest expenses

82

92

Loss on retirement of non-current assets

121

15

Other

77

88

Total non-operating expenses

281

196

(7,767)(1,583)

Subsidies for employment adjustment

273

337

Total extraordinary income

273

337

Non-operating expenses

Ordinary loss
Extraordinary income

Extraordinary losses
Impairment loss

235

282

Loss due to temporary closure

1,976

590

Total extraordinary losses

2,212

873

Loss before income taxes(9,705)(2,118)

Income taxes - current

84

359

Income taxes - deferred(3,359)(739)

Total income taxes(3,275)

(379)

Loss

(6,429)(1,738)Loss attributable to owners of parent(6,429)(1,738)

7

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)(Millions of yen)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(6,429)(1,738)Loss
Other comprehensive income
Valuation difference on available-for-sale securities

(77)

41

Remeasurements of defined benefit plans, net of tax

16

(2)

Total other comprehensive income
Comprehensive income

(61)

39

(6,491)(1,699)(6,491)(1,699)--Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

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

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First three months of FY3/22 (Apr. 1, 2021 – Jun. 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 1,015 million yen, cost of sales decreased 1,250 million yen, and selling, general andadministrative expenses decreased 12 million yen. Operating loss, ordinary loss and loss before income taxes
declined 247 million yen each in the first three months of the current fiscal year. In addition, there was a decrease of889 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 quarter of the previous fiscal year.

9

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

Application of the Accounting Standard for Measurement of Fair Value, etc.
The Company has applied the Accounting Standard for Measurement of Fair Value (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 Measurement of Fair Value, etc. prospectively in accordance withthe transitional treatment in the paragraph 19 of the Accounting Standard for Measurement of Fair Value andparagraph 44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). Thereis no effect of 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.
Segment Information
First three months of FY3/21 (Apr. 1, 2020 – Jun. 30, 2020)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
OthersSubtotal (Note 1)(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

16,594

253

9,023

290

26,161

42

26,204-

26,204

0

0

-

682

683

-

683

(683)

-

16,595

253

9,023

972

26,84442

26,887(683)

26,204

Total

Sales
External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (2,944)(1,324)(3,524)
195(7,597)32 (7,565)(1)(7,566)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related
business.
2. The -1 million yen adjustment to segment profit (loss) includes 1,083 million yen in elimination for inter-segment
transactions, and -1,084 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 and the Entertainment Business, impairment losses were recognized for operating stores set
to be closed or converted for which there is little expectation of recovery; impairment losses of 25 million yen and
210 million yen were booked respectively in the first three months of FY3/21.

10

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

First three months of FY3/22 (Apr. 1, 2021 – Jun. 30, 2021)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

17,364---

Bridal

-

2,453

-

Café complex--

10,812Others(Note
1)
Subtotal

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

Sales
Fashion

17,364-

17,364

-

-

2,453

-

10,812

17,364

-

2,453

-

2,453

-

10,812-

10,812

Karaoke

-

-

1,264

-

1,264

-

1,264

-

1,264

Fitness

-

-

684

-

684

-

684

-

684

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

-

-

-

20

20

-

20

17,364

2,453

12,761-

32,58020

32,600-32,600External sales
Inter-segment sales
and transfers
Total

-

-

-

304

304

-

304

-

304

17,364

2,453

12,761

304

32,88520

32,905-32,905

-

1

-

748

750

-

750

(750)

-

17,364

2,455

12,761

1,053

33,63520

33,655(750)

32,905

Segment profit (loss) (1,169)
97
(553)
248
(1,377)10 (1,367)(90)(1,457)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The -90 million yen adjustment to segment profit (loss) includes 897 million yen in elimination for inter-segment
transactions, and -987 million yen in company-wide costs that cannot be allocated to any specific reportable segments.
Company-wide costs mainly include administration expenses of the Company that cannot be attributed to reportablesegments.
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 for which there is little expectation of recovery;
impairment losses of 58 million yen, 222 million yen and 1 million yen were booked respectively in the first threemonths 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 183 million yen and segment loss decreased 265 million yen in
the Fashion Business in the first three months of FY3/22. Net sales decreased 1,081 million and there were no effect on
segment profit in the Anniversaire and Bridal Business. In the Entertainment Business, net sales decreased 117 million
yen and segment loss increased 18 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.

11