February 5, 2016

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2016
(Nine Months Ended December 31, 2015)[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:
February 8, 2016
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: None
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on February 5, 2016 at 15：30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2015
(April 1, 2015 – December 31, 2015)(1) Consolidated results of operations
Sales

Operating profit

Million yen%
Million yen%
Nine months ended Dec. 31, 2015
131,030
2.8
8,311
(3.2)
Nine months ended Dec. 31, 2014
127,405
3.5
8,584
(6.9)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2015:
Nine months ended Dec. 31, 2014:

Nine months ended Dec. 31, 2015
Nine months ended Dec. 31, 2014

Net income per share
Yen
52.19
54.90

(Percentages represent year-on-year changes)
Profit attributable toOrdinary income
owners of parent
Million yen%
Million yen
%
8,164
(4.2)
4,720
(5.7)
8,520 (11.5)
5,006
(8.8)
4,744 (down 16.7%)
5,697 (up 3.0%)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Dec. 31, 2015
221,809
139,159
As of Mar. 31, 2015
230,166
139,675
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2015:
139,072

Equity ratio
%
62.7
60.7
As of Mar. 31, 2015: 139,675

2. Dividends
1Q-endYen

2Q-end
Yen
18.00
20.00

FY3/15
FY3/16
FY3/16 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

Year-end
Yen
18.00
20.00

Total
Yen
36.00
40.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2016 (April 1, 2015 – March 31, 2016)
Sales

Operating profit

Ordinary income

Million yen%
Million yen%
Million yen
Full year
191,050
3.9
20,0005.1
19,900Note: Revisions to the most recently announced consolidated forecast: None%
5.2

(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen%
Yen
11,30010.9
125.09

* 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 4 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 Dec. 31, 2015:

90,649,504 shares

As of Mar. 31, 2015:

91,249,504 shares

As of Mar. 31, 2015:

66,492 shares

2) Number of shares of treasury stock at the end of the period
As of Dec. 31, 2015:

667,358 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2015:

90,439,736 shares

Nine months ended Dec. 31, 2014:

91,183,784 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 3 of the attachments regarding
preconditions or other related matters for the forecast shown above.

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

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

2(2) Explanation of Financial Position

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

3

2. Matters Related to Summary Information (Notes)

4

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

4

3. Quarterly Consolidated Financial Statements

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

Segment and Other Information

9

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, the Japanese economy on the whole continued to recover slowly.
However, the outlook remains unclear because of worries of an overseas economic downturn and other factors.
Although consumer spending is benefitting from improvement in income and employment, effects of higher foodand other prices and an abnormally warm winter are surfacing. As a result, the economy is at a standstill.
In this environment, the AOKI Group implemented various measures in each business segment as discussed below.
Sales increased 2.8% year-on-year to 131,030 million yen, but operating profit decreased 3.2% to 8,311 million yen.
Ordinary income decreased 4.2% to 8,164 million yen and profit attributable to owners of parent decreased 5.7% to
4,720 million yen.
Operating results by segment are as follows.
Fashion Business
AOKI offered customers ideas featuring the “trend colors” of Navy & Brown series and the popular “gilet (asleeveless jacket) style.” As for new ideas, AOKI launched the Reversible Series of apparel that can be worn in
two ways and, through collaboration with ORIHICA, a line of set-up suits that combine jackets and pants. For
women, the lineup of the Raku-Raku Kirei Series was expanded. This series of apparel features a stylish look andattractive profile along with comfort, new functions and easy care. Ten new stores were opened since the start of
the fiscal year and two stores were closed for relocation and other reasons. As a result, there were 565 AOKI
stores at the end of the third quarter compared with 557 at the end of the previous fiscal year.
TV commercials were launched for the ORIHIKA line of apparel for the first time and also the first Pop Up Shopin the men’s suits industry was opened in order to strengthen brand recognition. Eleven new stores were opened
since the start of the fiscal year, and six stores were closed to improve operating efficiency. As a result, there were146 ORIHICA stores at the end of the third quarter compared with 141 at the end of the previous fiscal year.
Overall sales benefited mainly from the contributions of new stores and increased 0.6% to 73,842 million yen.
Operating profit decreased 14.6% to 1,852 million yen, as existing stores encountered challenges due mainly tounfavorable weather.
Anniversaire and Bridal Business
ANNIVERSAIRE INC. operates guesthouse-style wedding and reception facilities. Expertise on customer service
was shared among these facilities to achieve higher ratio of successful contracts. There were also sales promotion
and public relations activities that utilized the strength and concept of each location. We also focused on actively
promoting marriage proposal plans following the launch of the Propose Planner service. Simultaneously we
commenced sales of baby rings and promoted restaurants for anniversary dining.
Sales decreased 2.8% to 23,520 million yen and operating profit decreased 6.3% to 3,508 million yen.
Karaoke Facility Operations Business
At VALIC Co., Ltd., which operates karaoke facilities, there were many seasonal menu items, a large number ofparty packages for the year-end party season backed by marketing campaigns. In addition, to attract morecustomers, more locations added the new Private Cinema service that allows guests to watch newly released
movies in private rooms. Seven new karaoke facilities were opened since the start of the fiscal year and one facility
was closed. As a result, there were 175 karaoke facilities at the end of the third quarter compared with 169 at theend of the previous fiscal year.
Sales increased 4.7% to 13,730 million yen and operating profit decreased 1.2% to 1,175 million yen.

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

Café Complex Operations BusinessAt the café complex operations of VALIC, there were many initiatives to increase the number of customers at
existing locations. For example, items were added to the winter ramen fair menu and all facilities now offer aservice that gives guests unlimited access to magazines by using a specialized electronic display device. Since thestart of the fiscal year, VALIC actively opened 30 new facilities including the Akihabara-ekimae Store, the first
facility exclusively for women, and closed one. As a result, there were 289 café complexes at the end of the third
quarter compared with 260 at the end of the previous fiscal year.
Sales increased 19.7% to 19,968 million yen mainly due to the benefits from new facilities and ongoing strong
sales at existing facilities. Operating profit also increased sharply by 31.2% to 1,663 million yen.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the third quarter under review decreased 8,356 million yen from the end of the previous
fiscal year to 221,809 million yen.
Current assets decreased 9,833 million yen from the end of the previous fiscal year. Although inventories
increased 3,999 million yen due to new store openings among other factors, cash in hand and in banks decreased
12,228 million yen due to capital investments and the payment of income taxes, and accounts receivable-tradedecreased 3,489 million yen due to seasonal reasons and other factors. Fixed assets increased 1,476 million yen
from the end of the previous fiscal year as tangible fixed assets increased 1,191 million yen due to new store
openings and other factors.
Liabilities
Current liabilities decreased 5,802 million yen from the end of the previous fiscal year. While there was a 5,000
million yen increase in short-term debt, accounts payable-trade decreased 3,448 million yen due to seasonalreasons and other factors. In addition, there were decreases of 3,157 million yen in accrued income taxes due tothe payment of income taxes, and 2,966 million yen in other current liabilities. Long-term liabilities decreased
2,038 million yen due to a decrease of 2,725 million yen in scheduled repayment of long-term debt.
Net assets
Net assets decreased 515 million yen from the end of the previous fiscal year. Although retained earnings
increased 1,279 million yen due to a profit attributable to owners of parent and dividend from surplus, there werea decrease of 923 million yen in capital surplus and an increase of 982 million yen in treasury stock due to thepurchase and retirement of treasury stock.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Results of operations in the first nine months under review were slightly less than the forecast. However, we havemaintained the forecast that was announced on November 6, 2015, because of the tendency for the Fashion
Business to record the majority of its earnings in the fourth quarter.

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

2. Matters Related to Summary Information (Notes)
Changes in Accounting Policies and Accounting-based Estimates, and Restatements
Changes in Accounting Policies
Effective from the first quarter of the current fiscal year, the Company has adopted the “Accounting Standard forBusiness Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, September 13, 2013),“Accounting Standard for Consolidated Financial Statements” (ASBJ Statement No. 22, September 13, 2013),“Accounting Standard for Business Divestitures” (ASBJ Statement No. 7, September 13, 2013) and otherstandards. In association with these changes, the presentation of net income and other items has been revised. For
consistency with these changes, the quarterly consolidated financial statements for the first nine months of theprevious fiscal year have been revised.

4

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Millions of yen)
Third quarter of FY3/16(As of Dec. 31, 2015)

FY3/15(As of Mar. 31, 2015)
AssetsCurrent assets
Cash in hand and in banks

29,226

16,998

Accounts receivable-trade

8,991

5,501

Inventories

26,47630,475

Other current assets

9,112

11,008

Allowance for doubtful accounts

(37)

(47)

73,76963,936

Buildings and structures, net

58,95960,077Land

37,09537,013

Total current assets
Fixed assets
Tangible fixed assets

Other tangible fixed assets, net

12,253

12,409Total tangible fixed assets

108,308

109,500

6,550

6,479

8,333

8,296

Intangible fixed assets
Investments and other assets
Guarantee deposits
Leasehold deposit

20,176

20,376

Other investments and other assets

13,06813,260Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,53841,893

156,396

157,873

230,166

221,809

19,867

16,418

Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade

-

5,000

Current portion of long-term debt

4,450

4,050

Accrued income taxes

3,789

631

Accrued bonuses for employees

1,735

922

105

88

Other current liabilities

13,450

10,484

Total current liabilities

43,39737,59435,32532,600

1,838

1,817

958

923

Short-term debt

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
Net defined benefit liability

382

437

Asset retirement obligations

4,773

5,037

54

33

Other long-term liabilities

3,761

4,205

Total long-term liabilities

47,09345,05590,49182,649Negative goodwill

Total liabilities

5

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

(Millions of yen)
Third quarter of FY3/16(As of Dec. 31, 2015)

FY3/15(As of Mar. 31, 2015)
Net assets
Shareholders’ equity
Common stock

23,282

23,282

Capital surplus

28,757

27,833Retained earnings

86,65887,938Treasury stock(45)(1,027)

138,654

138,027

1,229

1,185

Total shareholders’ equity
Accumulated other comprehensive income
Unrealized gain on securities
Remeasurements of defined benefit plans

(208)

(141)

Total accumulated other comprehensive income

1,021

1,044

-

87

Stock acquisition rights
Total net assets
Total liabilities and net assets

6

139,675

139,159

230,166

221,809

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Nine-month Period)(Millions of yen)First nine months of FY3/15(Apr. 1, 2014 – Dec. 31, 2014)

First nine months of FY3/16(Apr. 1, 2015 – Dec. 31, 2015)

Sales

127,405

131,030

Cost of sales

68,87971,854Gross profit

58,52659,175

Selling, general and administrative expenses

49,94150,864

Operating profit

8,584

8,311

Interest income

7880

Dividend income

127

122

Rental income on real estate

463

456

Amortization of negative goodwill

31

31

Other

199

202

Total non-operating profit

899

893

Interest expenses

233

248

Expenses on sub-leased real estate

397

409

Non-operating profit

Non-operating expenses

Loss on disposal of fixed assets

67

219

Other

265

163

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

964

1,040

8,520

8,164

-

41

-

41

662

390

-

439

Extraordinary losses
Impairment loss
Litigation settlement
Total extraordinary losses

662

829

Net income before income taxes

7,857

7,376

Current income taxes

2,301

2,019

Deferred income taxes

549

636

Total income taxes

2,851

2,656

Net income

5,006

4,720

Profit attributable to owners of parent

5,006

4,720

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/15(Apr. 1, 2014 – Dec. 31, 2014)(Millions of yen)First nine months of FY3/16(Apr. 1, 2015 – Dec. 31, 2015)

5,006

4,720

Unrealized gain on securities

610

(43)

Remeasurements of defined benefit plans, net of tax

80

66

Total other comprehensive income

691

23

5,697

4,744

5,697

4,744

-

-

Net income
Other comprehensive income

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

8

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First nine months of FY3/16 (Apr. 1, 2015 – Dec. 31, 2015)
Purchase and retirement of treasury stock
The Company has purchased 1,200,000 shares of its treasury stock and retired 600,000 shares of its treasury stock
pursuant to the resolution of the Board of Directors on May 8, 2015. As a result, capital surplus decreased 923
million yen to 27,833 million yen, and treasury stock increased 982 million yen to 1,027 million yen at the end of
the third quarter of FY3/16.
Segment and Other Information
First nine months of FY3/15 (Apr. 1, 2014 – Dec. 31, 2014)
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

73,432

24,17913,105

16,688

127,405-

127,405

4

11

3

-

19

(19)

-

Total

73,437

24,191

13,108

16,688

127,425(19)

127,405

Segment profit
2,168
3,742
1,190
1,268
8,370
214
8,584
Notes: 1. The 214 million yen adjustment to segment profit includes 3,241 million yen in elimination for inter-segment
transactions and -3,027 million yen in company-wide costs that cannot be allocated to reportable segments.
Company-wide costs mainly include administration expenses of the Company that cannot be attributed to any
specific reportable segments.
2. Segment profit is adjusted to be consistent 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 relocated for which there is little expectation ofrecovery and had remained in the red, and idle assets whose recoverable value had fallen below book value;
impairment losses of 246 million yen, 269 million yen and 120 million yen were booked respectively in the firstnine months of FY3/15.

9

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2016

First nine months of FY3/16 (Apr. 1, 2015 – Dec. 31, 2015)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)
Reportable segment
Café
ComplexOperations

Karaoke
Anniversaire
Facility
and Bridal
Operations

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

Total

Sales
External sales
Inter-segment sales
and transfers

73,83723,496

13,72819,967131,030-

131,030

4

24

2

0

31

(31)

-

Total

73,842

23,52013,73019,968131,061(31)

131,030

Segment profit
1,852
3,508
1,175
1,663
8,200
110
8,311
Notes: 1. The 110 million yen adjustment to segment profit includes 3,290 million yen in elimination for inter-segment
transactions, and -3,179 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 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 109 million yen, 133 million yen and 147 million yen
were booked respectively in the first nine months of FY3/16.

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

10