August 7, 2020

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2021
(Three Months Ended June 30, 2020)[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 11, 2020
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 7, 2020 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2020
(April 1, 2020 – June 30, 2020)(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, 2020
26,204 (39.5)(7,566)(7,767)(6,429)Three months ended Jun. 30, 201943,334(3.9)
228 (66.1)
(125)
(288)
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2020:(6,491) (-%)
Three months ended Jun. 30, 2019:(434) (-%)

Three months ended Jun. 30, 2020Three months ended Jun. 30, 2019

Net income per share
Yen(75.94)(3.35)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Jun. 30, 2020
245,152
130,826
As of Mar. 31, 2020
229,843
139,209
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2020: 130,542

Equity ratio
%
53.2
60.5
As of Mar. 31, 2020: 138,981

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/2023.00
FY3/21
FY3/21 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None
Forecasts for the 2Q-end and year-end dividends for FY3/21 are undecided at this time.

Year-end
Yen
23.00
-

Total
Yen
46.00
-

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)
There is no forecast for the fiscal year ending in March 2021 at this time. Determining a reliable forecast is not possible because of
the difficulty of predicting the effects of the COVID-19 crisis on the performance of the AOKI Group.
An announcement will be made as soon as it becomes possible to determine a forecast.
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:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Jun. 30, 2020:

90,649,504 shares

As of Mar. 31, 2020:

90,649,504 shares

As of Mar. 31, 2020:

5,974,058 shares

Three months ended Jun. 30, 2019:85,925,130 shares

2) Number of shares of treasury stock at the end of the period
As of Jun. 30, 2020:

5,974,148 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2020:

84,675,379 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
Supplementary materials for quarterly financial results will be available on the Company’s website immediately after theearnings announcement on Friday, August 7, 2020.

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

6

Quarterly Consolidated Statement of Income

6

Quarterly Consolidated Statement of Comprehensive Income

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Additional Information

8

Segment Information

8

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, the Japanese economy was confronted with a severe situation with the
spread of the novel coronavirus disease (COVID-19). To contain the COVID-19 pandemic, economic activity was
inhibited by factors such as the declaration of a State of Emergency and stay-at-home directives. This affected
corporate earnings, the labor market, and personal income. In addition, it is not clear how soon the COVID-19
pandemic can be brought under control. Consequently, the outlook is uncertain.
The AOKI Group took actions to prevent the COVID-19 infection and implemented various measures as explained
below. Sales decreased 39.5% year-on-year to 26,204 million yen, and operating loss was 7,566 million yen
compared with a profit of 228 million yen one year earlier. There was an ordinary loss of 7,767 million yen
compared with a loss of 125 million yen one year earlier. Loss attributable to owners of parent was 6,429 million
yen compared with a loss of 288 million yen one year earlier.
Operating results by segment are as follows.
Fashion BusinessIn the Fashion Business, due to the spread of the COVID-19 pandemic and the declaration of a State of Emergency
by the Japanese government on April 7, business hours for stores were shortened, and some stores were temporarilyclosed, but from June 1, all stores have now reopened for business. In terms of products, we are proposing a range ofeasy-to-mix-and-match apparel sets and jackets that go well with new business styles. Moreover, from May 1, the
AOKI Group started pre-order sales of antibacterial and washable masks, to at our AOKI e-commerce shop in order
to avoid Sanmitsu (Three Cs: Closed spaces, Crowded places, and Close-contact settings) conditions. These havebeen well received. In addition, as another measure for e-commerce shop, we have begun operating “STAFF
START,” which strengthens links between physical stores and e-commerce and offers styling proposals online.
Three ORIHICA stores were opened and two AOKI stores were closed due to examinations of stores from thestandpoints of profitability. As a result, there were 639 stores at the end of the first quarter compared with 638 at theend of the previous fiscal year.
Although the AOKI Group implemented various measures, both the number of customers and unit selling prices
decreased significantly mainly because of the temporary closure of some stores and more people staying home toprevent the spread of the COVID19. As a result, sales in this segment decreased 31.4% to 16,595 million yen andthere was an operating loss of 2,944 million yen compared with a 395 million yen loss one year earlier.
Anniversaire and Bridal BusinessIn the Anniversaire and Bridal Business, weddings and receptions were postponed at all facilities after the State ofEmergency was declared. However, from June 1 we restarted wedding services after taking measures in line with the“Guidelines for Preventing the Spread of COVID-19” published by the Japan Bridal Culture Promotion Association.
We actively responded to our customers about issues such as schedule changes and cancellations that arose from theend of February and held online consultations with them. We have also developed some new strategies, such as
special plans and online weddings, and strengthened our sales promotion activities.
However, many weddings and receptions were postponed and the number of couples married declined sharply. As aresult, sales decreased 95.5% to 253 million yen and there was an operating loss of 1,324 million yen compared witha 35 million yen loss one year earlier.

2

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

Entertainment BusinessIn the Entertainment Business, many stores had to cut back normal operations because of temporary closures andshortened business hours in April and May following the declaration of a State of Emergency. From the end of April,
we gradually resumed regular operations at our KAIKATSU CLUB chain of café complexes, after thoroughly
implementing measures to avoid Sanmitsu conditions. At the same time, we are promoting the use of the
KAIKATSU CLUB as shared space in response to the increasing business needs in areas such as teleworking andshared offices. During the first quarter, 27 KAIKATSU CLUBs and 5 FiT24 locations were opened and 5 locations
were closed to improve efficiency. As a result, there were 629 stores in this business segment at the end of the firstquarter compared with 602 at the end of the previous fiscal year.
Even though we implemented various measures, the number of customers decreased significantly mainly because of
the temporary closures of stores after the declaration of a State of Emergency and more people staying home. Sales
decreased 32.0% to 9,023 million yen and operating loss was 3,524 million yen compared with a 463 million yen
profit one year earlier.
Real Estate Leasing Business
Segment sales increased 14.9% to 972 million yen mainly because of an increase in the subleasing of closed
properties in all businesses. Operating profit increased 60.1% to 195 million yen.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the first quarter increased 15,308 million yen from the end of the previous fiscal year to245,152 million yen mainly due to an increase in cash in hand and in banks.
Current assets increased 8,352 million yen from the end of the previous fiscal year. There were a decrease of 3,027
million yen in accounts receivable-trade due to seasonal factors and an increase of 11,899 million yen in cash inhand and in banks due to proceeds from borrowings. Fixed assets increased 6,956 million yen from the end of theprevious fiscal year as tangible fixed assets increased 3,437 million yen due to new store openings and other factors.
Liabilities
Current liabilities increased 14,248 million yen from the end of the previous fiscal year. There were a decrease of
3,650 million yen in accounts payable-trade mainly due to seasonal factors and proceeds from short-term borrowingsof 14,000 million yen. Long-term liabilities increased 9,442 million yen mainly due to proceeds from long-termborrowings of 11,000 million yen.
Net assets
Net assets decreased 8,382 million yen from the end of the previous fiscal year. There was a decrease of 8,377
million yen in retained earnings due to a loss attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The first quarter sales and earnings declined sharply mainly due to COVID-19.
Regarding business prospects going forward, it is difficult to reasonably forecast at this time when the COVID-19
pandemic will be contained and when economic activity is likely to return to the levels seen before the spread of thepandemic, or the impact of these factors on the performance of the AOKI Group. Given these difficulties and otherfactors, there is no forecast for the fiscal year ending in March 2021.

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Millions of yen)First quarter of FY3/21(As of Jun. 30, 2020)

AssetsCurrent assets
Cash in hand and in banks

23,84335,743

Accounts receivable-trade

8,455

5,428

Inventories

24,181

23,090

Other current assets

8,851

9,422

Allowance for doubtful accounts

(36)

(36)

65,29773,649Buildings and structures, net

66,501

69,519Land

36,13836,138

Total current assets
Fixed assets
Tangible fixed assets

Other, net

14,893

15,312

Total tangible fixed assets

117,533

120,970

5,631

5,505

Guarantee deposits

7,740

7,714

Leasehold deposit

20,653

20,870

Other investments and other assets

13,02816,482Intangible assets
Investments and other assets

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,38245,026

164,546

171,502229,843

245,152

Total fixed assets
Total assets

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

(Millions of yen)First quarter of FY3/21(As of Jun. 30, 2020)

FY3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Accounts payable-trade

14,563

10,913

Short-term borrowings-

14,000Current portion of long-term borrowings
Accrued income taxes

3,493

3,493

407

360

Accrued bonuses for employees

1,357

908

39

23

Other current liabilities

12,727

17,138

Total current liabilities

32,587

46,83640,332

49,290695

625Retirement benefit liability

1,276

1,295

Asset retirement obligations

7,591

7,600

Accrued bonuses for directors (and other officers)

Long-term liabilities
Long-term borrowings
Accrued costs for customer point program

Other long-term liabilities

8,150

8,677

Total long-term liabilities

58,046

67,48890,634

114,325

Share capital

23,282

23,282

Capital surplus

27,82327,823

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

96,29887,921

Treasury stock(7,592)(7,592)

Total shareholders’ equity

139,812

131,435

Unrealized gain on securities

(726)

(804)

Remeasurements of defined benefit plans

(105)

(88)

Total accumulated other comprehensive income

(831)

(893)

228

284

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

5139,209130,826

229,843

245,152AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Three-month Period)(Millions of yen)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)

First three months of FY3/20(Apr. 1, 2019 – Jun. 30, 2019)
Sales

43,334

26,204

Cost of sales

26,101

20,165Gross profit

17,233

6,038

Selling, general and administrative expenses

17,005

13,605228(7,566)

Interest income

24

18

Dividend income

27

16

Operating profit (loss)
Non-operating profit

Other

49

46

Total non-operating profit

101

81

Interest expenses

68

82

Loss on disposal of fixed assets

222

121

Other

164

77

Total non-operating expenses

455

281

(125)

(7,767)

Gain on sale of fixed assets

50-

Gain on reversal of stock acquisition rights

3-

Subsidies for employment adjustment-

273

Total extraordinary gains

53

273

Non-operating expenses

Ordinary loss
Extraordinary gains

Extraordinary losses
Impairment loss
Loss due to temporary closure
Total extraordinary losses
Loss before income taxes

220

235

-

1,976

220

2,212

(292)

(9,705)Current income taxes

112

84

Deferred income taxes(116)(3,359)Total income taxes(4)(3,275)

Loss

(288)

(6,429)Loss attributable to owners of parent(288)(6,429)

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/20(Apr. 1, 2019 – Jun. 30, 2019)(Millions of yen)First three months of FY3/21(Apr. 1, 2020 – Jun. 30, 2020)(288)(6,429)

(160)

(77)

13

16

(146)

(61)

(434)

(6,491)(434)(6,491)--Loss
Other comprehensive income
Unrealized gain on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First three months of FY3/21 (Apr. 1, 2020 – Jun. 30, 2020)
No reportable information.

Additional Information
Accounting-based Estimates
At present, the COVID-19 pandemic is continuing to have a significant negative impact on the business operationsof the AOKI Group.
The effects of COVID-19 are likely to continue to expand somewhat in all regions of Japan where the businesses of
the AOKI Group operate stores and other facilities. The sales and operating profit of these stores and other facilities
may decline due to restrictions on their operations, lower demand and other reasons until when the pandemic winds
down and economic activity in Japan recovers. We expect sales in these businesses in the fiscal year ending inMarch 2021 to decline from the previous fiscal year’s level due to the effects of the COVID-19 pandemic. Sales arelikely to be down 5%-25% in the Fashion Business, approximately 20%-30% in the ANNIVERSAIRE and Bridal
Business, and about 25% in the Entertainment Business.
There is no significant change in the Group’s policy on assumptions, including how much the COVID-19 pandemic
will continue to spread, when this crisis will end and other upcoming events. To establish the best possible estimates,
based on the assumption that economic activity will return to the levels seen before the spread of the pandemic by
the end of September 2020 at the soonest and at the end of March 2021 at the latest, the expected value method isused for some estimates for accounting purposes that are utilized for the impairment of fixed assets and therecoverability of deferred tax assets.
Segment Information
First three months of FY3/20 (Apr. 1, 2019 – Jun. 30, 2019)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
Anniversaire
Real EstateEntertainment
and Bridal
Leasing

Fashion

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

Sales
External sales
Inter-segment sales
and transfers
Total

24,181

5,588

13,261

302

43,334-43,334

0

3

0

544

547

(547)

-

24,181

5,592

13,261846

43,882(547)

43,334

Segment profit (loss)
(395)
(35)
463
122
154
73
228
Notes: 1. The 73 million yen adjustment to segment profit (loss) includes 1,052 million yen in elimination for inter-segment
transactions, and -979 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.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2021

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 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 andsubleasing stores expected to remain in the red; impairment losses of 167 million yen, 37 million yen and 14 million
yen were booked respectively in the first three months of FY3/20.
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 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 for which there is little expectation of recovery and subleasing stores expected to remain in
the red; impairment losses of 25 million yen and 210 million yen were booked respectively in the first three months
of FY3/21.

* 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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