May 13, 2021

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2021
Company name:[Japanese GAAP]
Listings: TSE First Section
URL: https://www.aoki-hd.co.jp/

AOKI Holdings Inc.

Stock code:
8214
Representative:
Akihiro Aoki, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of Annual General Meeting of Shareholders:June 23, 2021
Scheduled date of filing of Annual Securities Report:
June 23, 2021
Scheduled date of payment of dividend:
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on May 13, 2021 at 14:30 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 – March 31, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toOperating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%(5,793)(6,606)(11,931)6,649(50.7)
5,501(53.7)
447(90.3)
FY3/21: (10,775) (-%)
FY3/20: (664) (-%)

Net sales
Million yen%
FY3/21
143,169(20.6)
FY3/20180,220(7.6)
Note: Comprehensive income (million yen)

Net income per
Diluted net income
Return on equity
share
per share
Yen
Yen%
FY3/21(140.77)(9.0)
FY3/205.23
0.3
Reference: Equity in income of affiliates (million yen)
FY3/21: -Ordinary profit on
total assets
%
(2.8)
2.4
FY3/20: -Operating profit to
sales
%
(4.0)
3.7

(2) Consolidated financial position
Total assets
Million yen
As of Mar. 31, 2021
237,260
As of Mar. 31, 2020
229,843
Reference: Shareholders’ equity (million yen)

Net assets
Million yen
125,850
139,209
As of Mar. 31, 2021: 125,487

Equity ratio%

Net assets per share
Yen
52.9
1,479.87
60.5
1,641.34
As of Mar. 31, 2020: 138,981(3) Consolidated cash flow position
Cash flows fromoperating activities
Million yen
4,351
14,803

FY3/21
FY3/20Cash flows frominvesting activities
Million yen(11,518)(16,418)

Cash flows fromfinancing activities
Million yen
13,265(1,098)Cash and cash equivalents
at end of period
Million yen
29,941
23,843

2. Dividends
Dividend per share
1Q-endYen
FY3/20FY3/21
FY3/22 (forecasts)-

2Q-end3Q-end

Yen
23.00
10.00
5.00

Yen

Year-end

Total

Yen
23.00
0.00
5.00

Yen
46.00
10.00
10.00

-

Dividend payout Dividend on
ratio
equity(consolidated) (consolidated)
Million yen
%
%
3,921
880.0
2.8
847
0.6
65.2
Total
dividends

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)
Net sales
Full year

Million yen
169,350

Operating profit%
18.3

Million yen
5,000

%
-

(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Ordinary profit
owners of parent
shareMillion yen%
Million yen
%
Yen
4,100
1,300
15.33

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) 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(3) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Mar. 31, 2021:

90,649,504 shares

As of Mar. 31, 2020:

90,649,504 shares

As of Mar. 31, 2020:

5,974,058 sharesFiscal year ended Mar. 31, 2020:

85,577,316 shares

2) Number of shares of treasury stock at the end of the period
As of Mar. 31, 2021:

5,853,274 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2021:

84,759,153 shares(For reference) Summary of Non-consolidated Financial Results
1. Non-consolidated Financial Results for the Fiscal Year Ended March 31, 2021 (April 1, 2020 – March 31, 2021)(1) Non-consolidated results of operations

FY3/21
FY3/20Net sales
Million yen
6,858
6,523

FY3/21
FY3/20Net income per share
Yen
22.54
57.00

%
5.1
15.3

(Percentages represent year-on-year changes)
Ordinary profit
ProfitMillion yen%
Million yen%
3,165(44.8)
1,910(60.8)
5,737(18.8)
4,878(25.5)

Operating profit
Million yen
%
1,020
57.8
646
(26.9)
Diluted net income per share
Yen-(2) Non-consolidated financial position
Total assets
Million yen
As of Mar. 31, 2021
182,081
As of Mar. 31, 2020
163,525
Reference: Shareholders’ equity (million yen)

Net assets
Million yen
114,730
114,429
As of Mar. 31, 2021: 114,367

Equity ratio%

Net assets per share
Yen
62.8
1,348.73
69.8
1,348.69
As of Mar. 31, 2020: 114,200

Note 1: This financial report is not subject to audit 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 “1.
Overview of Results of Operations, etc. (4) Outlook” 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 financial results will be available on the Company’s website immediately after the earnings
announcement on Thursday, May 13, 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,
May 28, 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) Fiscal Year Ended March 31, 2021

Contents of Attachments
Pages
2

1. Overview of Results of Operations, etc.
(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows

4(4) Outlook

4

2. Basic Approach for the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Income

8

Consolidated Statement of Comprehensive Income

9(3) Consolidated Statement of Changes in Shareholders’ Equity

10(4) Consolidated Statement of Cash Flows

12(5) Notes to Consolidated Financial Statements

13

Going Concern Assumption

13

Reclassifications

13

Additional Information

13

Segment and Other Information

15

Per Share Information

18

Subsequent Events18

4. Other

19

Changes in Directors

19

1

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

1. Overview of Results of Operations, etc.
(1) Results of Operations
Although the Japanese economy briefly staged a recovery during the fiscal year that ended in March 2021 , economic
activity in Japan was restricted throughout the fiscal year because of the states of emergency and other effects of the
COVID-19 pandemic. Furthermore, the outlook for the economy remains uncertain because there are still no signsof when this crisis will end. Although the AOKI Group implemented numerous measures in all business segments as
explained below in response to this challenging business climate, chiefly involving the COVID -19 crisis, sales andearnings were lower because the negative effects of this crisis were even greater than anticipated.
Net sales

143,169 million yen (down 20.6% year-on-year)

Operating loss

5,793 million yen (profit of 6,649 million yen one year earlier)Ordinary loss

6,606 million yen (profit of 5,501 million yen one year earlier)

Loss attributable to owners of parent

11,931 million yen (profit of 447 million yen one year earlier)Business segment performance was as follows.
Fashion Business
One theme of the Fashion Business during the COVID-19 crisis was sales of apparel to “freshers,” which are young
people advancing to a new stage of their lives, such as new university graduates starting their first jobs. To promote
apparel for this customer segment, AOKI conducted the highly successful Freshers Support Fair t hat included
advertising featuring idol group Sexy Zone and actress Mio Imada, both belonging to the same generation. The
lineup of pajama suits, which are very popular in Japan and other countries, was expanded as one way to target
demand associated with teleworking and other new life styles. In addition, AOKI stores started selling Active Work
Suits, which feature affordable prices along with outstanding functions and performance resulting from the 3D
pattern (draping) technology and other AOKI’s strengths as an apparel specialist. AOKI’s online shop started several
new services to strengthen digital interactions with customers. Three of these services are the registration of favorite
items, a review function and a remote styling service. Three ORIHICA stores were opened and seven AOKI storesand six ORIHICA stores were closed following examinations of the profitability of stores. As a result, there were
628 stores at the end of the fiscal year compared with 638 at the end of the previous fiscal year.
Although marketing activities in March 2021 targeting “freshers” were successful, results of operations were held
down as people stayed home and some stores shortened operating hours because of the January 2021 declaration of astate of emergency and the subsequent extension of this state of emergency due to the increasing number of
COVID-19 cases. As a result, sales in this segment decreased 13.2% to 85,387 million yen and operating profit
decreased 48.1% to 1,499 million yen.
Anniversaire and Bridal BusinessThis business offers a number of wedding formats to reflect the emergence of new life styles, including chapel
weddings, family weddings and photo weddings. This business also started an online wedding service that allows
people who do not live nearby to participate with ease and safety. Another innovation is the pet wedding that allows
couples to make pets part of the ceremony. In one more step to make weddings safe and efficient, this businessstarted a service that allows couples to use the internet for all preparations, including on the day before the ceremony.
ANNIVERSAIRE TOYOSU was closed due to the termination of a contract during the fiscal year. As a result, there
were 12 stores at the end of the fiscal year compared with 13 at the end of the previ ous fiscal year.
Despite numerous activities to attract customers as well as cost cutting measures, the number of weddings sharply
decreased due to wedding and reception postponements. As a result, sales fell 63 .9% to 8,033 million yen and there
was an operating loss of 3,088 million yen compared with a 439 million yen profit one year earlier.

2

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

Entertainment Business
All locations of this business continued to operate while taking many steps to protect customers from COVID -19.
KAIKATSU CLUB café complexes benefited from higher demand involving telework and telestudy. Café services
include web camera rentals at no charge, an internet conference app and the use of Microsoft Office. In another stepto provide more ways to use cafés, the distribution of original Terashima Bunko videos started. To attract morecustomers, COTE D’AZUR karaoke locations provide many services other than karaoke, such as the use of rooms
for viewing TV programs and videos, telework and schoolwork, and practicing a musical instrument. FiT24
self-service fitness clubs, which operate 24 hours, performed well by utilizing the strengths of this business modeland of locations where customers of FiT24 and KAIKATSU CLUB to use both the fitness center and café. During
the fiscal year, we opened 50 KAIKATSU CLUBs and 18 FiT24 locations, all of which were approved at the
beginning of the fiscal year. Eleven locations were closed to improve the efficiency of this business. As a result,
there were 659 locations in this segment at the end of the fiscal year compared with 602 at the end of the previous
fiscal year.
Although there were many activities for growth, sales and earnings were down as people stayed home for safety andsome locations temporarily closed or reduced operating hours because of COVID-19. In addition, expenses
increased because of the opening of more locations. Sales decreased 16.9% to 48,499 million yen and operating loss
was 5,190 million yen compared with a 2,672 million yen profit one year earlier.
Real Estate Leasing Business
Segment sales increased 7.0% to 3,876 million yen mainly because of an increase in the subleasing of stores andother facilities that were closed in the other three businesses. Operating profit increased 1 .5% to 678 million yen.
(2) Financial Position
Balance sheet position
AssetsTotal assets at the end of the fiscal year under review increased 7,416 million yen from the end of the previous fiscal
year to 237,260 million yen.
Current assets increased 2,555 million yen from the end of the previous fiscal year. There were increases of 6,098
million yen in cash and deposits due to proceeds from borrowings, and 2,230 million yen in accounts
receivable-trade. There were decreases of 4,069 million yen in inventories due to a decrease in procurement andother factors and 1,698 million yen in other current assets which include other accounts receivable. Non-current
assets increased 4,861 million yen from the end of the previous fiscal year as there was an increase of 5,235 million
yen in property, plant and equipment due to new store openings and other factors.
Liabilities
Current liabilities increased 15,254 million yen from the end of the previous fiscal year. There were proceeds fromshort-term borrowings of 11,000 million yen and an increase of 2,660 million yen in electronically recorded
obligations-operating. Non-current liabilities increased 5,521 million yen. There was an increase of 5,582 million
yen in long-term borrowings mainly due to a 11,000 million yen of new loan and scheduled repayment.
Net assets
Net assets decreased 13,359 million yen from the end of the previous fiscal year. There was a decrease of 14, 726
million yen in retained earnings due to a loss attributable to owners of parent and dividend from surplus.

3

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

(3) Cash Flows
Cash flow position(Millions of yen)
FY3/21

FY3/20Cash flows from operating activities

14,803

4,351

Cash flows from investing activities(16,418)(11,518)

Cash flows from financing activities(1,098)13,265

Increase (decrease) in cash and cash equivalents(2,714)

6,098

Cash and cash equivalents at beginning of period

26,55823,843

Cash and cash equivalents at end of period

23,84329,941

Cash and cash equivalents at the end of the fiscal year under review increased 6,098 million yen from the end of theprevious fiscal year to 29,941 million yen mainly due to proceeds from long-term borrowings and a decrease inincome taxes paid, while there was loss before income taxes.
Net cash provided by operating activities decreased 10,451 million yen to 4,351 million yen on a year-on-year basis.
The principal factors were loss before income taxes of 11,614 million yen, depreciation of 9,380 million yen,
impairment loss of 1,991 million yen and a decrease in inventories of 4,069 million yen.
Net cash used in investing activities decreased 4,900 million yen to 11,518 million yen on a year-on-year basis. Thiswas mainly due to the payments of 10,270 million yen for the purchase of property, plant and equipment for capital
investment, and 670 million yen for the purchase of intangible assets.
Net cash provided by financing activities increased 14,364 million yen to 13,265 million yen on a year-on-year basis.
This was mainly due to proceeds from long-term borrowings of 11,000 million yen for capital expenditure andshort-term borrowings of 11,000 million yen, while there were scheduled repayment of long-term borrowings of
3,493 million yen, repayments of lease obligations of 2,446 million yen and dividends paid of 2,795 million yen.
(4) Outlook
Due to the outlook for uncertainty to continue regarding the COVID-19 pandemic and when this crisis will end, the
AOKI Group will continue to take actions to conduct business operations safely and effectively during this crisis. In
addition, there will be numerous measures for the creation of new forms of value that match new life styles.
The Fashion Business will continue to work on new and modified apparel and other products that are needed during
the COVID-19 pandemic. Other priorities are creating a new collection of “home & work style” fash ions that are
unlike any existing category of apparel and developing products for working women and enlarging the lineup of thisapparel. Products and services available only on the online shop are also planned. This business is also reexamining
the store network in order to alter or close unprofitable stores in order to improve store operations for higher
efficiency. During the fiscal year ending in March 2022, this business plans to open three stores, all of which arerelocated existing stores.
The ANNIVERSAIRE and Bridal Business will continue to create ideas for new wedding formats and reexamine thecost structure in order to lower expenses.
The Entertainment Business aims to add a variety of content and services in order to become a provider of sharedworkspaces. The goal is to attract a broader range of customers and give customers reasons to use the locations of
this business more frequently. During the fiscal year ending in March 2022, this business plans to open 33
KAIKATSU CLUB cafés and 60 FiT24 fitness clubs, including locations that were scheduled for the previous fiscal
year but postponed because of COVID-19.
By taking all of these actions, the AOKI Group is aiming to be profitable in all business segments in the fiscal year
ending in March 2022.

4

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

Business segment forecasts are as follows.
Business segment forecasts for the fiscal year ending March 31, 2022
(Millions of yen)
FashionAnniversaireand Bridal

Entertainment

Real Estate
Leasing

OthersConsolidated

Sales

90,50010,85066,5504,000

200

169,350

YoY change (%)

106.0

135.1

137.2

103.2

-

118.3

Segment profit

3,000

300

1,500

850

60

5,000

YoY change (%)

200.1

-

-

125.2

-

-

Notes: 1. Segment profit is operating profit. Total segment profit differs from consolidated operating profit beca use of
consolidation adjustments.
2. The “others” includes advertising-related business.

Business segment forecasts are based on the following assumptions for changes in existing-store sales.
1Q

2Q

1H

3Q

4Q

2H

(%)
Full year

Fashion

9.0

(5.0)

2.2

0.8

11.8

7.4

5.5

Entertainment

29.0

21.5

24.4

23.8

30.4

27.1

25.9

Note: The Anniversaire and Bridal business expects an increase of 105.7% year-on-year in the number of weddings and adecrease of 10.3% in the average sales per couple, both at existing facilities

2. Basic Approach for the Selection of Accounting Standards
The AOKI Group’s operations are located in Japan and the Group has little or no need of raising funds in overseas
markets. Moreover, the percentage of shares held by foreign shareholders is relatively small. In view of the above
factors the Company currently uses Japanese accounting standards for its financial statements.
The Company will consider using International Financial Reporting Standards (IFRS) if considered necessary b y the
future direction of the Group’s business development, the use of IFRS by other companies in Japan and other factors.

5

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Millions of yen)
FY3/21(As of Mar. 31, 2021)

AssetsCurrent assets
Cash and deposits

23,84329,941

Accounts receivable-trade

8,455

10,686Inventories

24,181

20,112

Other

8,851

7,152

Allowance for doubtful accounts

(36)

(40)

65,29767,852

Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net

141,422

147,565

Accumulated depreciation(74,921)(78,690)

Buildings and structures, net

66,501

68,875

Machinery, vehicles, tools, furniture and fixtures
Accumulated depreciation
Machinery, vehicles, tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets

18,214

19,318(9,963)(10,830)

8,250

8,487

36,13836,13816,497

17,647(10,374)(10,684)

6,122

6,962

519

2,305

117,533

122,769

5,631

5,505

2,706

2,612

Investments and other assets
Investment securities
Guarantee deposits

7,740

7,409

Leasehold deposit

20,65320,752

Deferred tax assets

8,273

8,538

Other

2,048

1,860

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets
Total non-current assets
Total assets

6

41,382

41,133

164,546

169,407229,843

237,260

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

(Millions of yen)
FY3/21(As of Mar. 31, 2021)

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

14,563

14,241

-

2,660

-

11,000Current portion of long-term borrowings

3,493

5,418

Lease obligations

2,024

2,200

Accounts payable-other

5,515

5,083

Short-term borrowings

Income taxes payable

407

679

Provision for bonuses

1,357

1,013

39

-

Other

5,187

5,545

Total current liabilities

32,587

47,842Long-term borrowings

40,33245,914

Lease obligations

4,636

5,144

695

320

Retirement benefit liability

1,276

1,192

Asset retirement obligations

7,591

7,560

Other

3,513

3,435

Total non-current liabilities

58,04663,567

90,634111,409

Share capital

23,282

23,282

Capital surplus

27,82327,747Retained earnings

96,29881,571

Provision for bonuses for directors (and other officers)

Non-current liabilities

Provision for point card certificatesTotal liabilities
Net assets
Shareholders’ equity

Treasury shares(7,592)(7,438)

Total shareholders’ equity

139,812125,162

Valuation difference on available-for-sale securities

(726)

251

Remeasurements of defined benefit plans

(105)

72

Total accumulated other comprehensive income

(831)

324

228

363

139,209125,850

229,843

237,260

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

7

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Millions of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

Net sales

180,220

143,169

Cost of sales

107,737

94,805Gross profit

72,48348,364

Selling, general and administrative expenses

65,83354,157

Operating profit (loss)

6,649(5,793)

Interest income

78

67

Dividend income

73

27

Compensation income

85

68

Penalty income

-

45

Other

321

156

Total non-operating profit

557

365

Interest expenses

282

357

Loss on retirement of non-current assets

839

443

Non-operating profit

Non-operating expenses

Other

583

378

1,705

1,178

5,501

(6,606)

Gain on sales of non-current assets

65-

Gain on sales of investment securities

100

4

4

70

Total non-operating expenses
Ordinary profit (loss)
Extraordinary income

Gain on reversal of share acquisition rights
Subsidies for employment adjustment

-

691

170

767

Impairment loss

3,710

1,991

Loss on disaster

169-

Loss on valuation of investment securities

84

1,369

Loss due to temporary closure

-

2,200

Total extraordinary income
Extraordinary losses

Business restructuring expenses-

213

Total extraordinary losses

3,964

5,775

Profit (loss) before income taxes

1,707(11,614)

Income taxes - current

818

786

Income taxes - deferred

441

(470)

1,260

316

Profit447(11,931)

Profit (loss) attributable to owners of parent

447(11,931)

Total income taxes

8

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

Consolidated Statement of Comprehensive Income
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Millions of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

447(11,931)(1,096)

977

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

(15)

177

(1,112)

1,155

(664)

(10,775)(664)(10,775)--

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

9

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

(3) Consolidated Statement of Changes in Shareholders’ Equity
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Millions of yen)
Shareholders’ equity
Share capital
Balance at the beginning of period

Capital surplus

23,282

27,846

Retained earnings Treasury shares
100,488(6,302)

Total
shareholders’equity145,315

Changes during period
Dividend of surplus(4,637)(4,637)447

447

Profit attributable to owners ofparentPurchase of treasury shares
Disposal of treasury shares(22)(1,399)(1,399)110

87

Net changes in items other thanshareholders’ equity
Total changes during period

-

(22)

(4,190)(1,289)(5,502)

Balance at the end of period

23,282

27,82396,298(7,592)

139,812

Accumulated other comprehensive income
Remeasurements
Unrealized gainof defined benefit
on securities
plans
Balance at the beginning of period

370

(89)

Total accumulated
othercomprehensive
income280

Shareacquisitionrights75

Total net assets

145,671

Changes during period
Dividend of surplus(4,637)

Profit attributable to owners ofparent

447

Purchase of treasury shares(1,399)

Disposal of treasury shares

87

Net changes in items other thanshareholders’ equity(1,096)(15)(1,112)

153

(958)

Total changes during period(1,096)(15)(1,112)

153(6,461)

Balance at the end of period

(726)

(105)

(831)

228

139,209

10

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance at the beginning of period

Capital surplus

23,282

27,823Retained earnings Treasury shares
96,298(7,592)

Total
shareholders’equity139,812

Changes during period
Dividend of surplus(2,795)(2,795)

Loss attributable to owners ofparent(11,931)(11,931)

Purchase of treasury shares
Disposal of treasury shares

(76)

(0)

(0)

154

77

Net changes in items other thanshareholders’ equity
Total changes during period

-

(76)

(14,726)

153(14,649)

Balance at the end of period

23,282

27,747

81,571(7,438)125,162

Accumulated other comprehensive income
Remeasurements
Unrealized gainof defined benefit
on securities
plans
Balance at the beginning of period

(726)

(105)

Total accumulated
othercomprehensive
income(831)

Shareacquisitionrights228

Total net assets

139,209

Changes during period
Dividend of surplus(2,795)

Loss attributable to owners ofparent(11,931)

Purchase of treasury shares(0)

Disposal of treasury shares77

Net changes in items other thanshareholders’ equity

977

177

1,155

135

1,290

Total changes during period

977

177

1,155

135

(13,359)

Balance at the end of period

251

72

324

363

125,850

11

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

(4) Consolidated Statement of Cash Flows
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)(Millions of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

Profit (loss) before income taxes

1,707(11,614)

Depreciation

8,807

9,380

Impairment loss

3,710

1,991

-

2,200

Cash flows from operating activities

Loss due to temporary closure
Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for point cardcertificatesInterest and dividend income

158

184

(177)

(374)

(151)

(94)

Interest expenses

282

357

Loss on valuation of investment securities

84

1,369

Decrease (increase) in trade receivables

3,337(2,230)Decrease (increase) in inventories

1,392

4,069

Increase (decrease) in trade payables(3,598)(322)

Increase (decrease) in accrued consumption taxes

(97)

(160)

Other

924

633

Subtotal

16,3835, 390143

120Interest and dividend income received
Interests paid

(276)

(348)

Income taxes paid

(2,953)(840)

Income taxes refund

1,506

1,869

Payments for loss due to temporary closure-(1,839)14,803

4,351(13,959)(10,270)

Purchase of intangible assets

(971)

(670)

Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Net decrease (increase) in trust beneficiary rights

(838)

(931)

235

551

21

334

Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment

Other

(907)

(531)

(16,418)(11,518)-

11,000

Proceeds from long-term borrowings

9,000

11,000

Repayments of long-term borrowings(2,650)(3,493)

Repayments of lease obligations(2,013)(2,446)

Purchase of treasury shares(1,399)(0)

Dividends paid

(4,636)(2,795)

Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term borrowings

Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

600-(1,098)13,2650(0)Increase (decrease) in cash and cash equivalents(2,714)

6,098

Cash and cash equivalents at beginning of period

26,55823,843

Cash and cash equivalents at end of period

23,84329,941

12

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Reclassifications
Application of Accounting Standard for Disclosure of Accounting Estimates
The Accounting Standard for Disclosure of Accounting Estimates (ASBJ Guidance No. 31, March 31, 2020) has
been applied in the fiscal year ended March 31, 2021, and notes regarding significant accounting estimates areincluded in the consolidated financial statements.
However, information for the previous fiscal year is not described in the notes in accordance with the transitional
treatment prescribed in the proviso of paragraph 11 of this accounting standard.

Additional Information
Material Accounting-based Estimates
1. Impairment losses on non-current assets for stores(1) Amounts shown on consolidated financial statements for FY3/21(Millions of yen)
FY3/21
FashionBook value of non-current assets by segment at
end of period (After recording impairment losses)*
Impairment loss

Anniversaire and Bridal

Entertainment

58,16730,653

61,538

904

601

485

* Includes non-current assets for stores and corporate assets(2) Information concerning significant accounting estimates for identifiable items
i. Calculation method for estimates
The identification of the need for impairment and the recognition and measurement of impairment losses utilize
estimates of budgets in the following fiscal year and future cash flows for individual stores.
Individual stores are the smallest unit used for sources of independent cash flows. Indications of the need for
impairment are monitored primarily at stores that have an operating loss for two consecutive years, stores that were
unprofitable in the fiscal year that ended in March 2021 and are expected to remain unprofitable in the following
fiscal year, stores where the fair value of non-current assets has decreased significantly, and stores that are to beclosed. At stores where there is a need for impairment, future cash flows are estimated and if total cash flows before
discounting are less than the book value of the store’s non-current assets, the book value is reduced to the amountthat can be recovered and this reduction is recognized as an impairment loss. The amount that can be recovered isthe higher of the net sales proceeds and the utilization value.
ii. Major assumptions
Future cash flows are based on forecasts of future sales and operating profit at individual stores in accordance withbusiness plans that have been approved by executives with the appropriate authority. Total cash flows before
discounting and utilization value are determined by using a period of 20 years for stores where operations are
expected to continue, the length of a contract for stores where a contract cannot be renewed, and the remaining timeof operations for stores that are to be closed.
Regarding the effects of the COVID-19 pandemic, the assumption is that this crisis will continue until the end of
March 2022. Furthermore, after the pandemic ends, demand for the AOKI Group’s products and services is notexpected to return to the pre-pandemic level.

13

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

Fashion Business
New stores normally have an operating loss in the first year because of start-up expenses. As a result, the first year is
not included in the monitoring period used to identify indications of the need for impairment. When estimating
future sales and earnings, the assumption for the total existing store sales in the fiscal year ending in March 2022
and afterward is between 86% and 92% of sales in the fiscal year that ended in March 2019, which was before the
COVID-19 pandemic started.
Anniversaire and Bridal Business
Sales per couple are decreasing because of changes in market conditions caused by the COVID -19 pandemic. Whenestimating future sales and earnings, the assumption for sales per couple in the fiscal year ending in March 2022 andafterward is between approximately 88% and 90% of sales in the fiscal year that ended in March 2019, which was
before the COVID-19 pandemic started.
Entertainment Business
Due to the characteristics of this business, the number of customers at a new location normally increases for about
the first three years as awareness of the location increases. Furthermore, there is usually an oper ating loss in the firstyear because of start-up expenses. As a result, the first year is not included in the impairment monitoring period.
When estimating future sales and earnings, the assumption for the total existing store sales in the fiscal year endingin March 2022 and afterward is between 93% and 96% of sales in the fiscal year that ended in March 2019, which
was before the COVID-19 pandemic started.
(3) Effect on the balance sheet in the fiscal year ending in March 2022
If actual results of operations differ significantly from the sales and operating profit forecasts for the fiscal year
ending in March 2022 and afterward because of COVID-19 or some other reason, there may be an effect on theamount of the impairment loss in the fiscal year ending in March 2022.
The book values are as follows for non-current assets of stores where there was no impairment because the fiscal
year that ended in March 2021 was the store’s first year of operation or indications of the need for impairment w ere
identified but assets were not impaired on the basis of the sales and operating profit forecasts.
(Millions of yen)
FY3/21
FashionBook value of non-current assets of stores exempt
from impairment monitoring due to the first ofoperation
Book value of non-current assets of stores withindications of the need for impairment but noimpairment

Anniversaire and Bridal

Entertainment

282

-

7,538

6,273

2,363

12,309

2. Recoverability of deferred tax assets(1) Amounts shown on consolidated financial statements for FY3/21(Millions of yen)
FY3/21
Deferred tax assets

8,538(2) Information concerning significant accounting estimates for identifiable items
i. Calculation method for estimates
Each business of the AOKI Group is operated by a consolidated subsidiary. Deferred tax assets are recognized to theextent that these assets can reduce future tax payments. Recognition is based on the schedule for the elimination of
future addition differences at each consolidated subsidiary, the outlook for future taxable income in accordance withthe profitability of the group’s businesses, tax planning, and other factors. The outlook for the taxable income of14

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

consolidated subsidiaries, which reflects expectations concerning future profitability, is based on bus iness plans thathave been approved by executives with the appropriate authority.
ii. Major assumptions
The business plans prepared by consolidated subsidiaries incorporate forecasts concerning changes in demand, sales
and other items. These estimates use the assumptions that the COVID-19 pandemic will end in March 2022 and that,even afterward, demand for the AOKI Group’s products and services will not return to the pre -pandemic level. An
explanation of these assumptions is in “1. Impairment losses on non-current assets for stores.” At consolidated
subsidiary KAIKATSU FRONTIER, Inc., the business plan for the fiscal year ending in March 2022 and afterward
includes the expected sales and earnings from the 68 locations planned to be opened during the fiscal y ear ending inMarch 2022 or from locations to be opened in the following fiscal years.
(iii) Effect on the balance sheet in the fiscal year ending in March 2022
If actual results of operations differ significantly from the sales and operating profit forec asts for the fiscal year
ending in March 2022 and afterward because of COVID-19 or some other reason, there may be an effect on theamount of the deferred tax assets and income taxes – deferred in the fiscal year ending in March 2022.
Segment and Other Information
Segment information
1. Overview of reportable segment
The Group defines reportable segments as businesses for which financial details can be compiled; the Board of
Directors will review this information on a periodic basis in order to assist with decisions about allocating resourcesand evaluating the performance.
AOKI Holdings, as a pure holding company, supports the businesses of the various companies in the Group. AOKI
Holdings and each business company proposes and executes comprehensive strategies for the products and services
they sell in Japan.
The products and services of AOKI Holdings and the business companies are divided into segments. The four
reportable segments are the Fashion Business, the ANNIVERSAIRE and Bridal Business, the Entertainment
Business, and the Real Estate Leasing Business.
The Fashion Business plans and sells men’s and women’s wear; the ANNIVERSAIRE and Bridal Business operates
wedding halls; the Entertainment Business operates KAIKATSU CLUB, which provides services and spaces for avariety of experiences that match the current needs and preferences of consumers, fitness centers, and karaoke
facilities; and the Real Estate Leasing Business leases real estate of the AOKI Group, including space previously
occupied by stores and other businesses that were closed, within the Group and to other companies.
2. Calculation methods for sales, profits/losses, assets, liabilities and other items for each reportable segment
The accounting treatment methods for reportable segments are generally the same as accounting principles andprocedures used for the preparation of the consolidated financial statements.
Profits for reportable segments are generally operating profit figures. Profits on and transfer amounts ofinter-segment transactions within the Group are based on current market prices.

15

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

3. Information related to sales, profits/losses, assets, liabilities and other items for each reportable segment
FY3/20 (Apr. 1, 2019 – Mar. 31, 2020)(Millions of yen)Amounts shown on
Adjustment
consolidated(Note 1)
financial statements(Note 2)

Reportable segment
AnniversaireEntertainment
and Bridal

Fashion

Real Estate
Leasing

Total

Net sales
External sales
Inter-segment sales
and transfers
Total

98,351

22,26058,3881,220

180,220-

180,220

1

9

0

2,403

2,415

(2,415)-98,352

22,27058,3883,624

182,636(2,415)

180,220

Segment profit

2,886

439

2,672

668

6,667

(17)

6,649

Segment assets

102,989

37,31556,9291,468

198,704

31,139229,843

Other items
Depreciation

2,919

1,438

3,956

62

8,376

346

8,723

Amortization of goodwill

-

-

3

-

3

-

3

Increase in property,
plant and equipment andintangible assets

2,116

401

17,56929

20,116250

20,367

Notes: 1. The above adjustments include the following items.
(1) The -17 million yen adjustment to segment profit includes 4,281 million yen in elimination for inter-segment
transactions, and -4,299 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
to reportable segments.
(2) The 31,139 million yen adjustment to segment assets includes -42,725 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 73,865 million yen that cannot be allocated to any
specific reportable segments. Company-wide assets consist mainly of the Company’s land and building andstructures of the head office that cannot be attributed to reportable segments.
(3) The 250 million yen adjustment to an increase in property, plant and equipment and intangible assets mainly includes
investment in company-wide systems.
2. Segment profit is adjusted to be consistent with operating profit on the consolidated statement of income.

16

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)

Adjustment(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 2)

Reportable segment

FashionAnniversaireEntertainment
and Bridal

OthersSubtotal (Note 1)

Real
EstateLeasing

Total

Net sales
External sales

85,372

8,033

48,499

15

0

-

Total

85,387

8,033

48,499Segment profit (loss)

1,499(3,088)(5,190)

Segment assets

99,47934,05367,964

2,578

1,309

5,117

26

-

-

3

1,129

77

14,949Inter-segment
sales and transfers

1,173 143,078

91

143,169-

143,169

2,703

2,719

-

2,719

(2,719)-3,876 145,797

91

145,889(2,719)143,169(6,101)64(6,036)243(5,793)

1,235 202,732-

202,732

34,527237,260

9,031

-

9,031

272

9,303

-

3

-

3

-

3

6

16,162-

16,162369

16,531

678

Other items
Depreciation
Amortization of
goodwill
Increase inproperty, plant andequipment andintangible assets

Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising -related
business.
2. The above adjustments include the following items.
(1) The 243 million yen adjustment to segment profit (loss) includes 4,190 million yen in elimination for inter-segment
transactions, and -3,947 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
to reportable segments.
(2) The 34,527 million yen adjustment to segment assets includes -57,867 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 92,395 million yen that cannot be allocated to any
specific reportable segments. Company-wide assets consist mainly of the Company’s land and building andstructures of the head office that cannot be attributed to reportable segments.
(3) The 369 million yen adjustment to an increase in property, plant and equipment and intangible assets mainly includes
investment in company-wide systems.
3. Segment profit (loss) is adjusted to be consistent with operating loss on the consolidated statement of income.

17

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

Per Share Information
FY3/20(Apr. 1, 2019 – Mar. 31, 2020)
Net assets per share(Yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

1,641.34

1,479.87

5.23(140.77)

Net income (loss) per share

Notes: 1. In FY3/20, diluted net income per share is not presented since the Company has no potential stock with dilutive effects.
In FY3/21, diluted net income per share is not presented since the Company posted net loss, and has no potential s tockwith dilutive effects.
2. The following is a reconciliation of net income per share(Millions of yen)
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

FY3/20(Apr. 1, 2019 – Mar. 31, 2020)

Item
Net income per share
Profit (loss) attributable to owners of parent

447(11,931)

Profit not attributable to common shareholders

-

-

447

(11,931)85,57784,759

Share acquisition rights issued
pursuant to the Board of Directors’
resolution on November 18, 2015
Share Acquisition Rights No. 5
Number of stock acquisitionrights: 7,300

Share acquisition rights issued
pursuant to the Board of Directors’
resolution on June 27, 2019
Share Acquisition Rights No. 6
Number of stock acquisitionrights: 10,465

Profit (loss) attributable to owners of parent
applicable to common shares
Average number of common shares outstanding
during the period (Thousand shares)

Summary of potential stock not included in thecalculation of diluted net income per share since
there was no dilutive effect

Share acquisition rights issued
pursuant to the Board of Directors’
resolution on June 27, 2019
Share Acquisition Rights No. 6
Number of stock acquisitionrights: 11,345

3. The following is a reconciliation of net assets per share(Millions of yen)
FY3/21(As of Mar. 31, 2021)

FY3/20(As of Mar. 31, 2020)

Item
Total net assets
Deduction on total net assets

139,209125,850228363[of which share acquisition rights]

[228]

[363]

Net assets applicable to common shares

138,981

125,487

Number of common shares used in calculation of
net assets per share (Thousand shares)

84,67584,796

Subsequent Events
Retirement of Treasury Shares
The Board of Directors meeting held on April 28, 2021, a resolution was adopted that AOKI Holdings will retire
shares in accordance with Article 178 of the Companies Act, for the purpose of improving capital efficiency.
1. Type of shares to be retired:

Common stock of AOKI Holdings

2. Total number of shares to be retired:

3,000,000 shares(3.31% of total shares outstanding prior to the retirement)

3. Planned date of retirement:

May 17, 2021

18

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2021

4. Other
Changes in Directors
Candidate for director (to be effective on June 23, 2021)
Director

Mitsuo Takahashi (currently Representative Director of Pan Pacific International Holdings
Corporation and External Director of MIG Holdings Ltd.)

Note: Mr. Mitsuo Takahashi is a candidate for an external director.

* 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.

19