May 10, 2024

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2024
Company name:[Japanese GAAP]
Listings: Tokyo Stock Exchange
URL: https://www.aoki-hd.co.jp/

AOKI Holdings Inc.

Stock code:
8214
Representative:
Haruo Tamura, President
Contact:
Satoshi Eguchi, General Manager of IR/PR OfficeTel: +81-45-941-1388
Scheduled date of Annual General Meeting of Shareholders:June 27, 2024
Scheduled date of filing of Annual Securities Report:
June 27, 2024
Scheduled date of payment of dividend:
June 6, 2024
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 10, 2024 at 15:30 (GMT +9).

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

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2024 (April 1, 2023 – March 31, 2024)(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%
13,86035.4
13,235
57.0
7,574
34.5
10,235
88.0
8,430
93.3
5,632
119.7
FY3/24: 7,756 (up 32.7%)
FY3/23: 5,845 (up 105.9%)

Net sales
Million yen%
FY3/24
187,716
6.6
FY3/23
176,170
13.7
Note: Comprehensive income (million yen)

Net income per
Diluted net income
Return on equity
share
per share
Yen
Yen%
FY3/2490.03
5.6
FY3/2366.34
4.3
Reference: Equity in income of affiliates (million yen)
FY3/24: -Ordinary profit on
total assets
%
5.6
3.6
FY3/23: -Operating profit to
sales
%
7.4
5.8

(2) Consolidated financial position
Total assets
Million yen
As of Mar. 31, 2024
236,327
As of Mar. 31, 2023
233,416
Reference: Shareholders’ equity (million yen)

Net assets
Million yen
137,056
132,251
As of Mar. 31, 2024: 136,757

Equity ratio%

Net assets per share
Yen
57.9
1,627.63
56.5
1,554.37
As of Mar. 31, 2023: 131,969(3) Consolidated cash flow position
Cash flows fromoperating activities
Million yen
17,593
17,475

FY3/24
FY3/23

Cash flows frominvesting activities
Million yen(10,886)(3,026)

Cash flows fromfinancing activities
Million yen(9,344)(14,091)

Cash and cash equivalents
at end of period
Million yen
35,65738,295

2. Dividends
Dividend per share
1Q-endYen
FY3/23
FY3/24
FY3/25 (forecasts)-

2Q-end3Q-end

Yen
7.00
13.00
15.00

Yen

Year-end

Total

Yen
13.00
37.00
40.00

Yen
20.00
50.00
55.00

-

Dividend payout Dividend on
ratio
equity(consolidated) (consolidated)
Million yen
%
%
1,698
30.1
1.3
4,201
55.5
3.1
57.8
Total
dividends

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2025 (April 1, 2024 – March 31, 2025)
Net sales
Full year

Million yen
191,500

Operating profit%
2.0

Million yen
15,000%
8.2(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Ordinary profit
owners of parent
shareMillion yen%
Million yen%
Yen
14,600
10.3
8,000
5.6
95.21

* 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 shares) at the end of the period
As of Mar. 31, 2024:

86,649,504 shares

As of Mar. 31, 2023:

87,649,504 shares

As of Mar. 31, 2023:

2,746,866 sharesFiscal year ended Mar. 31, 2023:

84,902,782 shares

2) Number of treasury shares at the end of the period
As of Mar. 31, 2024:

2,626,986 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2024:

84,128,272 shares

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 financial results
Supplementary materials for financial results will be available on the Company’s website immediately after the earnings
announcement on Friday, May 10, 2024.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by web conference on Thursday,
May 23, 2024. 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, 2024

Contents of Attachments
Pages
1. Overview of Results of Operations, etc.

2(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

14

Going Concern Assumption

14

Material Accounting-based Estimates

14

Reclassifications

16

Segment and Other Information

16

Per Share Information

19

Subsequent Events

19

1

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

1. Overview of Results of Operations, etc.
(1) Results of Operations
In the fiscal year that ended in March 2024, there was a recovery of the Japanese economy at a moderate pacebacked by firm consumer spending as social and economic activities returned to normal after the pandemic and thelabor market and personal income improved. However, the outlook for the Japanese economy remains uncertain. The
main reasons are concerns about the prolonged uncertain overseas situation, the negative effect of inflation causedby the high cost of energy and raw materials due to the yen’s depreciation, and Japan’s serious labor shortage. The
AOKI Group implemented numerous measures in all business segments as explained below in response to thischallenging business climate and lifestyle changes. The results for the fiscal year were as follows.
Net sales

187,716 million yen (up 6.6% year-on-year)

Operating profit

13,860 million yen (up 35.4% year-on-year)

Ordinary profit

13,235 million yen (up 57.0% year-on-year)

Profit attributable to owners of parent

7,574 million yen (up 34.5% year-on-year)

Business segment performance was as follows.
Fashion Business
AOKI stores conducted a very successful Freshers Support Fair accompanied by a marketing campaign featuringwell-known people. The freshers segment is young people who are starting college or a new job. One highlight of
the fiscal year involving merchandise includes further strengthening the lineup of Pajama Suits, an apparel category
with cumulative sales of more than 470,000 units. Another highlight is the use of AOKI’s strength as a retailer
specializing in business suits for the launch of Sporty Casual apparel that has a combination of sporty and somewhatbusiness-like appearance to enable use when at work too. At ORIHICA stores, RFID tags (ICs that wirelessly senddata to a reader) are now used at all stores to improve customer service and make store operations more efficient. In
addition, ORIHICA operated pop-up shops specializing in a specific line of apparel such as THE THIRD SUITS, aline of next-generation suits, BIZSPO apparel that features business casual and sporty styli ng, and apparel for
special events like school entrance and graduation ceremonies. Five AOKI stores, including those after conversion
from a different format, and one ORIHICA store were opened, and four AOKI stores and five ORIHICA stores wereclosed to improve the efficiency of store operations and make conversion to a different format. As a result, thenumber of stores decreased from 596 at the end of the previous fiscal year to 593 at the end of the current fiscal year.
Due to these activities and an increase in sales per customer, existing stores sales remained firm and sales during theFreshers campaign from late February through March were strong. As a result, sales in this segment increased 5.8%
year on year to 100,038 million yen and operating profit increased 21.3% year on year to 8,082 million yen.
Entertainment Business
KAIKATSU CLUB café complexes were remodeled for greater customer convenience and comfort by increasing thenumber of locations that have personal rooms with locks. In addition, cafés served a variety of limited time only
menu items through tie-ups with famous restaurants and manufacturers. One example is menu items of Spaghetti
House Yokoi, which first created ankake spaghetti (spaghetti with a thick sauce combining a tomato base andvegetables). At COTE D’AZUR karaoke stores, there were several marketing campaigns, including a spring
campaign offering special rates to people starting a new phase of their lives (new school or job) and a campaign thatallows customers to borrow BEYBLADE X tops at no cost. FiT24, which operates 24-hour self-service fitness gyms,
is continuing to add indoor golf facilities at gyms and conducted several discount campaigns that included discounts
to customers who bring in new members. During the current fiscal year, KAIKATSU CLUB opened seven cafés and
FiT24 opened six gyms while 15 KAIKATSU CLUB café, seven COTE D’AZUR karaoke facilities and three FiT24
gyms were closed due to measures to improve efficiency. As a result, including the 9 2 JIYU KUKAN café
complexes and other locations of RUNSYSTEM (including 53 franchised stores), the number of locations in thisbusiness decreased from 810 at the end of the previous fiscal year to 784 at the end of the current fiscal year.

2

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

Segment sales and earnings increased because of the implementation of these measures and firm sales at existing
locations. Sales in this segment increased 6.6% to 75,545 million yen and operating profit increased 71.4% to 5,454
million yen.
Anniversaire and Bridal Business
There were many activities to receive orders for weddings as marketing operations were revised to match therecovery of Japan’s wedding market. At ANNIVERSAIRE Omotesando, which has reopened following a majorrenovation, there were larger numbers of events featuring the products of high -end brands and orders for hosting
parties. During the period leading up to Valentine’s Day, ANNIVERSAIRE cafés sold ANNIVERSAIRE chocolate
products and added special menu items.
As a result, sales increased 9.0% to 10,259 million yen and operating profit decreased 85.0% to 57 million yen.
Real Estate Leasing Business
Segment sales increased 25.9% to 6,051 million yen and operating profit increased 75.7% to 1,312 million yen
mainly because of the leasing of properties outside the AOKI Group.
(2) Financial Position
Balance sheet position
AssetsTotal assets at the end of the current fiscal year increased 2,911 million yen from the end of the previous fiscal year
to 236,327 million yen.
Current assets increased 2,963 million yen mainly due to an increase of 2,328 million yen in accounts
receivable-trade caused by higher sales and other factors, and an increase of 2,781 million yen in inventories
resulting from an increase in procurement, while there was a decrease of 2,638 million yen in cash and deposits.
Non-current assets decreased 52 million yen due to a decrease of 236 million yen in intangible assets and a decreaseof 1,558 million yen in investments and other assets, including deferred tax assets, while property, plant andequipment increased 1,743 million yen due to new store openings and other activities.
Liabilities
Current liabilities increased 2,953 million yen from the end of the previous fiscal year. There were an increase of
749 million yen in accounts payable-trade mainly due to an increase in procurement, an increase of 550 million yen
in lease obligations and an increase of 1,566 million yen in others including accrued expenses, while there was adecrease of 805 million yen in current portion of long-term borrowings. Non-current liabilities decreased 4,847
million yen due to a decrease of 3,519 million yen in long-term borrowings for scheduled repayments and a decreaseof 708 million yen in lease obligations.
Net assets
Net assets increased 4,805 million yen from the end of the previous fiscal year. Although there was a decrease of
1,197 million yen in capital surplus mainly due to the retirement of treasury shares, treasury shares decreased 443
million yen as a result of repurchase and retirement and retained earnings increased 5,378 million yen due to a profit
attributable to owners of parent and dividend from surplus.

3

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

(3) Cash Flows
Cash flow position(Millions of yen)
FY3/24

FY3/23
Cash flows from operating activities

17,475

17,593

Cash flows from investing activities(3,026)(10,886)

Cash flows from financing activities(14,091)(9,344)

Increase (decrease) in cash and cash equivalents

358(2,638)Cash and cash equivalents at beginning of period

37,93738,295

Cash and cash equivalents at end of period

38,29535,657

Cash and cash equivalents at the end of the current fiscal year decreased 2,638 million yen from the end of theprevious fiscal year to 35,657 million yen mainly due to an increase in purchase of property, plant and equipment,
while there was an increase in profit before income taxes.
Cash flows from operating activities
Net cash provided by operating activities increased 118 million yen from one year earlier to 17,593 million yen. The
principal factors were profit before income taxes of 12,441 million yen, depreciation of 9,635 million yen andimpairment losses of 1,798 million yen.
Cash flows from investing activities
Net cash used in investing activities increased 7,860 million yen from one year earlier to 10,886 million yen. Thiswas mainly due to the payments of 11,186 million yen for the purchase of property, plant and equipment for capital
investment.
Cash flows from financing activities
Net cash used in financing activities decreased 4,746 million yen from one year earlier to 9,344 million yen. Thiswas mainly due to repayments of long-term borrowings of 10,213 million yen, repayments of lease obligations of
2,057 million yen and dividends paid of 2,196 million yen, while there were proceeds from long-term borrowings of
6,000 million yen.
(4) Outlook
The outlook is expected to remain uncertain due to the high cost of energy and raw materials, the resulting inflationand other reasons. In this difficult environment, we will continue to take numerous measures in each of ourbusinesses for the creation of new forms of value by providing products and services that reflect changes in market
conditions and life styles. We will also increase synergies among all businesses of the AOKI Group. Our objective isthe growth of the corporate value of the entire group.
In the Fashion Business, we are reinforcing AOKI and ORIHICA’s identity as a provider of LIFE & WORK STYLE
fashions. Creating and enlarging lineups of products that match customers’ needs is one goal. We will use IT systems
to provide even greater convenience for customers while operating stores more efficiently. Utilizing idle space isanother goal in order to increase the efficiency of business operations. During the fiscal year, we plan to open 20
stores using the AOKI or ORIHICA brand.
The Entertainment Business is adding a variety of content and services and conducting many types of marketing
campaigns to attract a broader range of customers. Stores are also continuing to take steps to use a smaller staff tomake store operations more efficient. During the fiscal year, we plan to open 22 locations using the KAIKATSU
CLUB or FiT24 brand.
In the ANNIVERSAIRE and Bridal Business, major activities planned for the fiscal year include measures to receive
more orders, upgrades at the flagship ANNIVERSAIRE locations at Omotesando in Tokyo and Minatomirai in
Yokohama. To improve efficiency, standardized and more efficient store operations and other measures will be used.

4

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

Business segment forecasts are as follows.
Business segment forecasts for the fiscal year ending March 31, 2025
(Millions of yen)
Fashion
Sales

Entertainment

Anniversaire andBridalReal Estate Leasing

Consolidated

101,700

75,60012,0006,700

191,500

YoY change (%)

101.7

100.1

117.0

110.7

102.0

Segment profit

8,700

5,600

500

1,600

15,000YoY change (%)

107.6

102.7

865.4

121.9

108.2

Note: Segment profit is operating profit. Total segment profit differs from consolidated operating profit because of other businessand consolidation adjustments.

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

2Q

1H

3Q

4Q

2H

(%)
Full year

Fashion

3.1

0.9

2.1

2.1

(0.7)

0.3

1.0

Entertainment

0.4

(0.3)

0.0

0.4

(0.6)

(0.1)

0.0

Notes: 1. The ANNIVERSAIRE and Bridal Business expects an increase of 1.9% year-on-year in the number of weddings(including chapel weddings, family weddings and photo weddings) at existing facilities (excluding the Omotesando
location which was closed for renovations in the previous fiscal year).
2. The Entertainment Business does not include RUNSYSTEM.

* AOKI has disclosed today on its website its three-year Medium-term Business Plan which starts in the fiscal year
ending March 31, 2025. Please take a look.
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 by the
future direction of the Group’s business development, the use of IFRS by other companies in Japan and otherfactors.

5

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Millions of yen)
FY3/24(As of Mar. 31, 2024)

AssetsCurrent assets
Cash and deposits

38,29535,657

Accounts receivable-trade

13,114

15,442Inventories

19,46522,247

Other

8,015

8,496

Allowance for doubtful accounts

(54)

(42)

78,83681,800142,955

145,798

Accumulated depreciation(79,056)(81,391)

Buildings and structures, net

63,89864,406

21,466

24,673(13,060)(14,345)

8,406

10,32731,021

30,693

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

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

17,612

16,723(11,992)(11,286)

5,619

5,437

352

176

109,299

111,042

7,007

6,771

Investment securities

2,249

2,199

Guarantee deposits

6,628

6,446

Leasehold deposit

19,013

18,873

Deferred tax assets

8,687

7,785

Other

1,744

1,461

Total property, plant and equipment
Intangible assets
Investments and other assets

Allowance for doubtful accounts

(53)

(52)

Total investments and other assets

38,272

36,713

154,579

154,526

233,416

236,327

Total non-current assets
Total assets

6

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

(Millions of yen)
FY3/24(As of Mar. 31, 2024)

FY3/23(As of Mar. 31, 2023)
Liabilities
Current liabilities
Accounts payable-trade17,96318,713Current portion of long-term borrowings

10,647

9,842

Lease obligations

1,734

2,284

Accounts payable-other

7,020

7,114

Income taxes payable

2,012

2,106

Contractual liabilities

1,788

1,876

Provision for bonuses

3,349

3,790

65

240

Provision for bonuses for directors (and other officers)
Other

4,322

5,889

Total current liabilities

48,90451,857Long-term borrowings

36,20632,687

Lease obligations

4,111

3,402

Non-current liabilities

Retirement benefit liability

895

607

Asset retirement obligations

7,855

7,914

Other

3,190

2,800

52,26047,412

101,164

99,270Share capital

23,282

23,282

Capital surplus

23,795

22,597Retained earnings

87,434

92,813

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

Treasury shares(3,490)(3,047)

Total shareholders’ equity

131,022

135,645

Valuation difference on available-for-sale securities

682

741

Remeasurements of defined benefit plans

265

369

Total accumulated other comprehensive income

947

1,111

281

299

132,251

137,056

233,416

236,327

Accumulated other comprehensive income

Non-controlling interests
Total net assets
Total liabilities and net assets

7

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Millions of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

Net sales

176,170

187,716

Cost of sales

106,614110,786

Gross profit

69,55676,929Selling, general and administrative expenses

59,32063,069Operating profit

10,235

13,860Interest income

6870

Dividend income

53

37

Gain on insurance claims

37

49

Other

244

172

Total non-operating profit

404

329

Interest expenses

362

286

Loss on retirement of non-current assets

996

94

Special survey costs, etc.

264-

Loss on store closings

153

372

Non-operating profit

Non-operating expenses

Other

431

200

2,209

954

8,430

13,235Gain on sale of non-current assets

97

28

Gain on sale of investment securities

231

154

-

320

Total non-operating expenses
Ordinary profit
Extraordinary income

Gain on sale of shares of subsidiaries and associates
Settlements received-

500

Gain on reversal of share acquisition rights

738-

Subsidies for employment adjustment

257

-

1,324

1,003

1,973

1,798

21

-

1,994

1,798

Profit before income taxes

7,760

12,441

Income taxes – current

2,705

4,028

Total extraordinary income
Extraordinary losses
Impairment loss
Loss on sale of investment securities
Total extraordinary losses

Income taxes – deferred

(440)

820

Total income taxes

2,264

4,849

Profit

5,496

7,592

Profit (loss) attributable to non-controlling interests

(136)

17

Profit attributable to owners of parent

5,632

7,574

8

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

Consolidated Statement of Comprehensive Income
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Millions of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

5,496

7,592

ProfitOther comprehensive income
Valuation difference on available-for-sale securities

446

59

Remeasurements of defined benefit plans, net of tax

(97)

104

Total other comprehensive income

349

164

5,845

7,756

5,981

7,738

(136)

17

Comprehensive income
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, 2024

(3) Consolidated Statement of Changes in Shareholders’ Equity
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Millions of yen)
Shareholders’ equity

Balance at the beginning of period

Share capital

Capital surplus

23,282

23,870Retained earnings Treasury shares
82,821

Total
shareholders’equity(3,489)126,484

Changes during period
Dividend of surplus(1,018)(1,018)

Profit attributable to owners ofparent

5,632

5,632

Purchase of treasury shares(0)Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(0)

(75)

(75)

Total changes during period

-

(75)

4,613

(0)

4,537

Balance at the end of period

23,282

23,79587,434(3,490)131,022

Accumulated other comprehensive income

Balance at the beginning of period

Unrealized
gain onsecurities

Remeasurementsof defined benefit
plans

235

362

Share
NonTotal accumulatedacquisition controllingotherrightsinterests
comprehensive
income598

559-

Total net
assets127,641

Changes during period
Dividend of surplus(1,018)

Profit attributable to owners ofparent

5,632

Purchase of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders’ equity

(0)
(75)
446

(97)

349

(559)

281

71

Total changes during period

446

(97)

349

(559)

281

4,609

Balance at the end of period

682

265

947

-

281

132,251

10

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)(Millions of yen)
Shareholders’ equity

Balance at the beginning of period

Share capital

Capital surplus

23,282

23,795Retained earnings Treasury shares
87,434(3,490)Total
shareholders’equity131,022

Changes during period
Dividend of surplus(2,196)(2,196)

Profit attributable to owners ofparent

7,574

7,574

Purchase of treasury shares

(877)

(877)

(32)

155

123

(1,165)1,165

Disposal of treasury shares
Cancellation of treasury shares
Net changes in items other thanshareholders’ equity
Total changes during period-(1,197)

5,378

443

4,623

Balance at the end of period

23,282

22,597

92,813(3,047)

135,645

Total accumulated
othercomprehensive
incomeNoncontrollinginterests

Total net assets

947

281

132,251

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

682

265

Changes during period
Dividend of surplus(2,196)

Profit attributable to owners ofparent7,574

Purchase of treasury shares(877)

Disposal of treasury shares

123

Cancellation of treasury shares
Net changes in items other thanshareholders’ equity

59

104

164

17

181

Total changes during period

59

104

164

17

4,805

Balance at the end of period

741

369

1,111

299

137,056

11

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

(4) Consolidated Statement of Cash Flows
FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Millions of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

Profit before income taxes

7,760

12,441

Depreciation

9,171

9,635

Impairment loss

1,973

1,798

61

81

Increase (decrease) in retirement benefit liability

(67)

(141)

Increase (decrease) in provision for bonuses

1,535

440

Interest and dividend income

(121)

(108)

Interest expenses

362

286

Gain on sale of non-current assets

(97)

(28)

Subsidies for employment adjustment

(257)

-

Loss (gain) on sales of investment securities

(209)

(154)

-

(320)

Cash flows from operating activities

Amortization of goodwill

Gain on sale of affiliate stock

-

(500)

(738)

-

(1,064)(2,420)Decrease (increase) in inventories(976)(2,781)

Increase (decrease) in trade payables

2,591

750

Settlements received
Gain on reversal of share acquisition rights
Decrease (increase) in trade receivables

Increase (decrease) in contract liabilities

657

87

Increase (decrease) in accrued consumption taxes

(282)

(663)

Other

2,567

2,521

Subtotal

22,86520,923

Interest and dividend income received

100

93

Interests paid

(365)

(301)

-

500

(4,094)(4,495)

Settlements received
Income taxes paid
Income taxes refund
Payments for retirement benefits for directors (andother officers)
Subsidies for employment adjustment received

4873(1,292)-257-

Net cash provided by (used in) operating activities

17,475

17,593

Cash flows from investing activities(4,568)(11,186)

Proceeds from sale of property, plant and equipment

362

977

Purchase of intangible assets

(780)

(707)

Payments for leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee
deposits
Proceeds from sales of investment securities

(305)

(589)

1,378

462

Purchase of property, plant and equipment

895

323

Net decrease (increase) in trust beneficiary rights
Proceeds from sale of shares of subsidiaries resulting
in change in scope of consolidation
Proceeds from purchase of shares of subsidiaries
resulting in change in scope of consolidation
Other

(493)

(406)

-

311

76

-

409

(71)

Net cash provided by (used in) investing activities(3,026)(10,886)

12

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)(Millions of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

Cash flows from financing activities(100)

Net increase (decrease) in short-term borrowings-

Proceeds from long-term borrowings

130

6,000

Repayments of long-term borrowings(10,943)(10,213)

Repayments of lease obligations
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Purchase of treasury shares(2,026)(2,057)

(125)

-

(0)

(877)

Dividends paid

(1,024)(2,196)

Net cash provided by (used in) financing activities(14,091)(9,344)

Effect of exchange rate change on cash and cash
equivalents(0)0Increase (decrease) in cash and cash equivalents

358(2,638)Cash and cash equivalents at beginning of period

37,93738,295

Cash and cash equivalents at end of period

38,29535,657

13

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Material Accounting-based Estimates
1. Impairment losses on non-current assets for stores(1) Amounts shown on the consolidated financial statements(Millions of yen)
FY3/23Entertainment

Anniversaireand Bridal

46,50458,686

12,548

714

1,135

-

FashionBook value of non-current assets
by segment at end of period (After
recording impairment losses) Note
Impairment loss

FY3/24Entertainment

Anniversaireand Bridal

44,87758,046

13,194

273

1,180

-

FashionNotes: 1. Includes non-current assets for stores and corporate assets
2. As described in “Segment information, 5. Information related to revisions for reportable segments,” themethod of measuring reportable segment profits/losses and assets has been changed from the current
fiscal year, and the book value of non-current assets by segment at the end of the previous fiscal year andimpairment loss are presented based on the measurement method after the change.
(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, s tores that were
unprofitable in the fiscal year that ended in March 2024 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 indi vidual 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.
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. Furthermore, we
believe that the business model of the Fashion Business needs to be revised to reflect changes in l ife styles, theincreasing use of casual apparel at work and other trends. When estimating future sales and earnings, it is assumed
that total existing store sales in the fiscal year ending in March 2025 and afterward will be between 99% and 101%of sales in the fiscal year that ended in March 2024.
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 operating loss in the firstyear of operation because of start-up expenses. As a result, the first year is not included in the impairment

14

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

monitoring period. When estimating future sales and earnings, it is assumed that to tal existing store sales (excluding
sales of RUNSYSTEM and its subsidiaries) in the fiscal year ending in March 2025 and afterward will be between
99% and 100% (99% to 100% for café complex, 100% to 101% for karaoke and 99% to 100% for fitness) of sales in
the fiscal year that ended in March 2024.
Anniversaire and Bridal Business
The number of weddings in Japan and sales per couple are changing as there are changes in the styles of weddingsthat many couples prefer, such as family weddings and photograph-only weddings. Although we believe that thechanges in the styles of weddings will continue, the performance of this business is showing signs of returning to thepre-pandemic level. For estimates of future sales and earnings, due to these changes, we assume that the number of
weddings and sales per couple will increase slightly. Starting in the fiscal year ending in March 2025, we assume
that the number of weddings at existing locations will be between 100% and 102% of the number in the fiscal yearthat ended in March 2024 and sales per couple will be between 100% and 104%.
(3) Effect on the consolidated financial statements in the fiscal year ending in March 2025
If actual results of operations differ significantly from the sales and operating profit forecasts for the fiscal year
ending in March 2025 and afterward because of changes in market conditions, there may be an effect on the amountof the impairment loss in the fiscal year ending in March 2025.
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 2024 was the store’s first year of operation or indications of the need for impairment wereidentified but assets were not impaired on the basis of the sales and operating profit forecasts.
(Millions of yen)
FY3/23
FashionBook value of non-current assets of stores
exempt from impairment monitoring due
to the first year of operation
Book value of non-current assets of storeswith indications of the need for
impairment but no impairment

Entertainment

Anniversaireand Bridal

FashionEntertainment

Anniversaireand Bridal

2,245

-

72

1,604

-

15,280

1,636

2,801

10,856

2,068

55

2,720

FY3/24Note 1

Note 2

Notes: 1. Café complex: 12,249 million yen; karaoke: 1,516 million yen and fitness: 1,514 million yen
2. Café complex: 8,269 million yen; karaoke: 934 million yen and fitness: 1,652 million yen
2. Recoverability of deferred tax assets(1) Amounts shown on consolidated financial statements(Millions of yen)
FY3/23
Deferred tax assets

FY3/24
8,687

7,785

(2) Information concerning significant accounting estimates for identifiable items
i. Calculation method for estimates
Deferred tax assets are recognized for the Company and its consolidated subsidiaries, to the extent that these assets
can reduce future tax payments. Recognition is based on the schedule for the elimination of future additiondifferences at each consolidated subsidiary, the outlook for future taxable income in accordance with theprofitability of the group’s businesses, tax planning, and other factors. The outlook for the taxable income of theCompany and its consolidated subsidiaries, which reflects expectations concerning future profitability, is based on
business plans that have been approved by executives with the appropriate authority.
ii. Major assumptions
The business plans prepared by the Company and its consolidated subsidiaries incorporate forecasts concerningchanges in demand, sales and other items. An explanation of primary assumptions on the businesses of theconsolidated subsidiaries is in “1. Impairment losses on non-current assets for stores.” At consolidated subsidiaries,

15

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

the business plan includes the expected sales and earnings from locations planned to be opened during the fiscal yearthat ending in March 2025 and afterward.
iii. Effect on the consolidated financial statements in the fiscal year ending in March 2025
If actual results of operations differ significantly from the sales and operating profit forecasts for the fiscal year
ending in March 2025 and afterward because of changes in market conditions or some other reason, there may be aneffect on the amounts of the deferred tax assets and income taxes – deferred in the fiscal year ending in March 2025.
Reclassifications
Notes to Consolidated Statements of Income“Gain on insurance claims” included in “Other” under “Non-operating profit” in the previous fiscal year, isreclassified and presented as a separate line item in the current fiscal year since the amount exceeded 10% of total
non-operating profit. To conform to this change, the consolidated financial statements for the previous fiscal year are
reclassified.
As a result, “Other” of 282 million yen under “Non-operating profit” presented in the previous fiscal year’s
consolidated statement of income has been reclassified as “Gain on insurance claims” of 37 million yen and “Other”
of 244 million yen.
“Loss on store closings” included in “Other” under “Non-operating expenses” in the previous fiscal year, isreclassified and presented as a separate line item in current fiscal year since the amount exceeded 10% of total
non-operating expenses. To conform to this change, the consolidated financial statements for the previous fiscal year
are reclassified.
As a result, “Other” of 585 million yen under “Non-operating expenses” presented in the previous fiscal year’s
consolidated statement of income has been reclassified as “Loss on store closings” of 153 million yen and “Other”
of 431 million yen.
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 se gments. The four
reportable segments are the Fashion Business, the Entertainment Business, the ANNIVERSAIRE and Bridal
Business, and the Real Estate Leasing Business.
The Fashion Business plans and sells men’s and women’s wear; the Entertainment Business operates KAIKATSU
CLUB and JIYU KUKAN, which provide services and spaces for a variety of experiences that match the current
needs and preferences of consumers, fitness centers, and karaoke facilities; the ANNIVERSAIRE and Bridal
Business operates wedding halls; 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 othercompanies.
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.

16

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

3. Information related to sales, profits, assets, and other items for each reportable segment and breakdown ofrevenue
FY3/23 (Apr. 1, 2022 – Mar. 31, 2023)(Millions of yen)

Subtotal

Others(Note 1)

Total

Adjustment(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)

Reportable segment

FashionNet sales
FashionCafé complex
Karaoke

AnniversaireEntertainment
and Bridal

Real
EstateLeasing

94,519-54,9159,870--

94,51954,9159,870-

94,51954,9159,870-

94,51954,915
9,870

-

5,114
901
-

9,405

-

5,114
901
9,405

38
-

5,114
940
9,405

-

5,114
940
9,405

Revenue fromcontracts withcustomers

94,51970,802

9,405-

174,727

38 174,766-

174,766

Other revenues

-

61

-

1,342

1,404

-

1,404

-

1,404

External sales
Inter-segment
sales andtransfers

94,51970,863

9,405

1,342

176,131

38 176,170-

176,170

0

12

6

3,464

3,483

3,544

(3,544)-

Total

Fitness
Other
Bridal60

94,51970,876

9,412

4,807

179,615

98 179,714(3,544)

176,170

Segment profit

6,662

3,183

385

746

10,9785

10,983(748)

10,235

Segment assets

98,981

68,067

14,79825,586

207,433- 207,433

25,982

233,416

2,015

5,666

748

164

8,595

-

8,595

530

9,125

-

61

-

-

61

-

61

-

61

2,120

6,746

100

236

9,203

-

9,203

220

9,424

Other items
Depreciation
Amortization of
goodwill
Increase in property,
plant and equipment
and intangible 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 -748 million yen adjustment to segment profit includes 4,332 million yen in elimination for inter-segment
transactions, and -5,080 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 25,982 million yen adjustment to segment assets includes -48,691 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 74,674 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 220 million yen adjustment to an increase in property, plant and equipment and intangible assets mainly includes
investment in company-wide systems.
3. Segment profit is adjusted to be consistent with operating profit on the consolidated statement of income.

Significant change in goodwill
Goodwill was booked in the “Entertainment Business” segment as AOKI Holdings has acquired the shares of
RUNSYSTEM Co., Ltd. and included this company in the scope of consolidation. The event caused the a mount of
goodwill to increase by 407 million yen in FY3/23.

17

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

4. Information related to sales, profits/losses, assets, and other items for each reportable segment and breakdown ofrevenue
FY3/24 (Apr. 1, 2023 – Mar. 31, 2024)(Millions of yen)

Reportable segment

Anniversaire
Fashion Entertainment
and Bridal

Net sales
FashionCafé complex
KaraokeReal
EstateLeasing

Subtotal

Others(Note 1)

Total

Amounts
shown onAdjustment consolidated(Note 2)
financialstatements(Note 3)100,035-

58,946
10,377--100,035
58,946
10,377-100,035
58,946
10,377-100,035
58,946
10,377

-

5,197
926
-

10,255

-

5,197
926
10,255

104
-

5,197
1,031
10,255

-

5,197
1,031
10,255

Revenue fromcontracts withcustomers

100,035

75,448

10,255-

185,739104

185,843-

185,843

Other revenues

-

81

-

1,791

1,872

-

1,872

-

1,872

External sales
Inter-segment
sales andtransfers

100,035

75,530

10,255

1,791

187,611

104

187,716-

187,716

2

15

4

4,260

4,282

65

4,348

(4,348)-Total

100,038

75,545

10,2596,051

191,894170

192,064(4,348)

187,716

Segment profit/loss

8,082

5,454

57

1,312

14,907(1)

14,906(1,045)

13,860103,162

67,093

15,411

25,201

210,869-

210,869

25,458236,327

2,033

6,153

724

174

9,086

-

9,086

504

9,590

-

81

-

-

81

-

81

-

81

2,912

8,087

1,343

688

13,030-13,030233

13,264

Fitness
Other
BridalSegment assets
Other items
Depreciation
Amortization of
goodwill
Increase in property,
plant and equipment
and intangible 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 -1,045 million yen adjustment to segment profit/loss includes 3,888 million yen in elimination forinter-segment transactions and -4,934 million yen in company-wide costs that cannot be allocated to any specificreportable segments. Company-wide costs mainly include administration expenses of the Company that cannot be
attributed to reportable segments.
(2) The 25,458 million yen adjustment to segment assets includes -45,696 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 71,154 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 233 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 profit on the consolidated statement of income.

5. Information related to revisions for reportable segments
Change in the method of measuring reportable segment sales, profit/loss, and assets
The Company reexamined the method of measuring segment profit/loss and assets in order to manage operating
results by reportable segment and control investment efficiency more properly, and changed the method of
measuring reportable segment sales, profits/losses, assets, depreciation, and increase in property, plant andequipment and intangible assets from FY3/24.
The segment information for FY3/23 is prepared and reported based on the measurement method after the change.

18

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2024

Per Share Information(Yen)
FY3/23
FY3/24(Apr. 1, 2022 – Mar. 31, 2023)(Apr. 1, 2023 – Mar. 31, 2024)
Net assets per share
1,554.37
1,627.63
Net income per share
66.34
90.03
Notes: 1. Diluted net income per share is not presented for FY3/23 as there were no potential stock with dilutive effects and for
FY3/24 as there were no potential stock.
2. The following is a reconciliation of net income per share

Item

FY3/23(Apr. 1, 2022 – Mar. 31, 2023)

Net income per share
Profit attributable to owners of parent
Profit not attributable to common shareholders
Profit 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(Millions of yen)
FY3/24(Apr. 1, 2023 – Mar. 31, 2024)

5,632
-

7,574
-

5,632

7,574

84,902

84,128--

3. The following is a reconciliation of net assets per share
Item

FY3/23(As of Mar. 31, 2023)

Total net assets
Deduction on total net assets[of which non-controlling interests]
Net assets applicable to common shares
Number of common shares used in calculation of
net assets per share (Thousand shares)(Millions of yen)
FY3/24(As of Mar. 31, 2024)

132,251281[281]
131,969

137,056
299[299]
136,757

84,902

84,022

Subsequent Events
No reportable information.

* 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