November 9, 2023

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2024
(Six Months Ended September 30, 2023)[Japanese GAAP]
Listings: Tokyo Stock Exchange
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://www.aoki-hd.co.jp/
Representative:
Haruo Tamura, President
Contact:
Satoshi Eguchi, General Manager of IR/PR OfficeTel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
November 10, 2023
Scheduled date of payment of dividend:
December 4, 2023
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on November 9, 2023 at 15:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2023
(April 1, 2023 – September 30, 2023)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%
Million yen%
81,055
7.2
3,798
87.9
Six months ended Sep. 30, 2023
75,59521.2
2,021
Six months ended Sep. 30, 2022
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2023:
Six months ended Sep. 30, 2022:

Six months ended Sep. 30, 2023
Six months ended Sep. 30, 2022

Net income per
share
Yen
24.50
7.07

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
Million yen%
Million yen
%
3,557
111.6
2,063 243.6
1,681
600
2,156 (up 194.1%)
733 (-%)

Diluted net income
per shareYen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
221,480
132,549
As of Sep. 30, 2023
233,416
132,251
As of Mar. 31, 2023
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2023: 132,304

Equity ratio
%
59.7
56.5
As of Mar. 31, 2023: 131,969

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

Year-end
Yen
13.00

Total
Yen

FY3/237.00
20.00
FY3/2413.00
FY3/24 (forecasts)
27.00
40.00
Note: Revisions to the most recently announced dividend forecast: Yes
For more information, please see “Revisions to Consolidated Earnings Forecasts and Year-end Dividend Forecast for the Fiscal
Year Ending March 31, 2024” that was announced today (November 9, 2023).

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
185,000
5.0
13,00027.0
12,500
48.3
6,800
20.7
80.83
Note: Revisions to the most recently announced consolidated forecast: Yes
For more information, please see “Revisions to Consolidated Earnings Forecasts and Year-end Dividend Forecast for the Fiscal
Year Ending March 31, 2024” that was announced today (November 9, 2023) and “(3) Explanation of Consolidated Forecast
and Other Forward-looking Statements” on page 4 of the attachments.

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury shares) at the end of the period
As of Sep. 30, 2023:

86,649,504 shares

As of Mar. 31, 2023:

87,649,504 shares

As of Mar. 31, 2023:

2,746,866 shares

Six months ended Sep. 30, 2022:

84,902,871 shares

2) Number of treasury shares at the end of the period
As of Sep. 30, 2023:

2,626,827 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2023:

84,218,844 shares

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forecasts and other matters
Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available
to the Company at the time the materials were created. These materials are not promises by the Company regarding future
performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to “(3)Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 of the attachments regarding
preconditions or other related matters for the forecast shown above.
Supplementary materials for quarterly financial results
Supplementary materials for quarterly financial results will be available on the Company’s website immediately after the earnings
announcement on Thursday, November 9, 2023.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by web conference on Wednesday,
November 22, 2023. Materials to be distributed at this event will be available on the Company’s website on the morning of themeeting.

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

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

2(2) Explanation of Financial Position

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

7

Quarterly Consolidated Statement of Income

7

Quarterly Consolidated Statement of Comprehensive Income8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Segment Information

10

Business Combinations

11

1

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, there was an overall recovery of the Japanese economy at a moderate pace
as social and economic activities continued to return to normal. However, consumer spending slowed down for shorttime because of typhoons and heavy rain during the summer and other reasons. The outlook for the economy remains
uncertain because of inflation and other concerns involving the high cost of energy and raw materials caused by global
events causing uncertainty, the yen’s depreciation and other reasons.
Due to the measures of the AOKI Holdings Group explained in the following sections, both sales and earnings
increased in the first half of the current fiscal year. Net sales increased 7.2% from one year earlier to 81,055 million
yen, operating profit increased 87.9% to 3,798 million yen, ordinary profit increased 111.6% to 3,557 million yen,and profit attributable to owners of parent increased 243.6% to 2,063 million yen.
Business segment performance was as follows.
Fashion BusinessThis business added the new Pajama Suits Relax line of apparel that reflects the increasing interest in wearing relaxing
apparel, a trend triggered by the popular Pajama Suits series. Another step was the expansion of selections of apparelin response to changes in styles of business apparel. Additions to apparel selections include the line of T-shirts with
Business Suit Tailoring, which are also ideal for wearing with a business suit jacket. In the women’s fashion category,
this business placed emphasis on sales of apparel with functions for comfort. Two examples are new ideas in thesummer mix-and-match apparel category for working women and the line of Kinseki Cut T-shirts, which have fabricable to block most near-infrared rays, which are a cause of skin wrinkling. Three AOKI stores were opened, including
those after conversion from a different format, and two AOKI stores and three ORIHICA stores were closed to improvethe efficiency of store operations and make conversion to a different format. As a result, the number of stores decreased
from 596 at the end of the previous fiscal year to 594 at the end of the second quarter.
These activities and hot summer weather generated strong sales of summer formal and other Cool Biz apparel. As aresult, sales increased 4.0% year on year to 37,643 million yen and operating profit increased 100.7% year on year to437 million yen.
Anniversaire and Bridal BusinessThis business continued marketing activities using the internet and social networking services for efficiently attracting
customers. On September 8, ANNIVERSAIRE Omotesando, which is celebrating its 25th anniversary, reopened
following an extensive remodeling project. The new look is based on the concept of “TOKI MAKE: a location formaking memories with people who mean the most to each other.” ANNIVERSAIRE Omotesando has numerous
amenities and features involving time, experiences, merchandise and services that are associated with anniversaries.
Reopening this key location in central Tokyo is expected to contribute to more growth by even more firmly positioning
ANNIVERSAIRE as a leading company for producing events for anniversaries and other special days.
The number of weddings at existing locations was consistently high although there were negative effects from theclosing of ANNIVERSAIRE Omotesando for remodeling and expenses for renovation. As a result, sales increased
3.3% to 4,348 million yen and there was an operating loss of 434 million yen compared with a loss of 29 million yen
one year earlier.
Entertainment Business
KAIKATSU CLUB café complexes are continuing to create café environments that match customers’ needs andimprove these environments. Activities include the addition of more individual-use rooms with locks and theremodeling of café interiors and exteriors. There are also ongoing measures for improving services targetingbusinesspeople and students. This business has a partnership with The Tokyo Chamber of Commerce and Industry
concerning its certification tests and has a tie-up with the Office Pass system of Nikkei, Inc. In another step to attract
customers, café complexes offered seasonal menu items through tie-ups with famous restaurant chains andmanufacturers. At COTE D’AZUR karaoke stores, several fee packages were added to offer attractive prices
throughout the day. Two examples are a morning karaoke package and a nighttime reduced-rate campaign. Karaoke

2

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

stores also added menu items, such as seasonal dishes like chilled pasta and shaved ice. FiT24, which operates 24hour self-service fitness gyms, opened new stores as planned and continued to increase the number of indoor golf
facilities. During the first half, KAIKATSU CLUB opened three cafés and FiT24 opened six gyms while five
KAIKATSU CLUB café and six COTE D’AZUR karaoke facilities were closed due to measures to improve efficiency.
As a result, including the 97 JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 54
franchised stores), the number of locations in this business decreased from 810 at the end of the previous fiscal year
to 799 at the end of the second quarter.
Segment sales and earnings increased because of these measures and other factors. Sales in this segment increased
10.8% to 38,277 million yen and operating profit increased 102.3% to 3,735 million yen.
Real Estate Leasing Business
Segment sales increased 15.3% to 2,724 million yen and operating profit increased 13.1% to 461 million yen mainly
because of the leasing of idle space of the AOKI Group’s stores.
(2) Explanation of Financial Position
1) Balance sheet position
AssetsTotal assets at the end of the second quarter decreased 11,936 million yen from the end of the previous fiscal year to
221,480 million yen primarily because of a decrease in accounts receivable-trade.
Current assets decreased 15,189 million yen mainly due to decreases of 8,602 million yen in cash and deposits and6,865 million yen in accounts receivable-trade caused by seasonal and other factors. Non-current assets increased
3,253 million yen as property, plant and equipment increased 3,837 million yen.
Liabilities
Current liabilities decreased 11,441 million yen from the end of the previous fiscal year. There were decreases of
5,479 million yen in accounts payable-trade mainly due to seasonal factors, 1,787 million yen in current portion of
long-term borrowings mainly for scheduled repayments, 1,336 million yen in accrued income taxes due to the payment
of income taxes, and 1,475 million yen in provision for bonuses. Non-current liabilities decreased 793 million yen
due to a decrease of 1,168 million yen in long-term borrowings resulting from a 6,000 million yen of new loan andthe transfer to the current portion.
Net assets
Net assets increased 298 million yen from the end of the previous fiscal year. Although there were a decrease of 1,197
million yen in capital surplus due to the retirement of treasury shares and a net decrease of 443 million yen in treasury
shares as a result of repurchase and retirement, retained earnings increased 959 million yen due to a profit attributableto owners of parent and dividend from surplus.
2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter decreased 8,602 million yen fromthe end of the previous fiscal year to 29,693 million yen.
Cash flows from operating activities
Net cash provided by operating activities increased 545 million yen from one year earlier to 3,753 million yen. The
principal factors were profit before income taxes of 3,920 million yen and depreciation of 4,710 million yen, while
there was a decrease in trade payables of 5,479 million yen.
Cash flows from investing activities
Net cash used in investing activities increased 5,847 million yen from one year earlier to 6,454 million yen. This was
mainly due to the payments of 7,510 million yen for the purchase of property, plant and equipment for new store

3

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

openings, renewals and other activities, while there was a net decrease in trust beneficiary rights of 585 million yen.
Cash flows from financing activities
Net cash used in financing activities decreased 819 million yen from one year earlier to 5,902 million yen. This was
mainly due to scheduled repayments of long-term borrowings of 8,956 million yen, dividends paid of 1,104 million
yen and purchase of treasury shares of 877 million yen, while there were proceeds from long-term borrowings of
6,000 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
By taking into consideration marketing and other activities of all businesses in the second half of the current fiscal
year based on results of operations in the first half, the fiscal year forecast announced on May 11, 2023 has beenrevised. For more information, please see “Revisions to Consolidated Earnings Forecasts and Year-end Dividend
Forecast for the Fiscal Year Ending March 31, 2024” that was announced on today (November 9, 2023).
Our business segment forecasts were also revised as follows.
Business segment forecasts for the fiscal year ending March 31, 2024
FashionAnniversaireand Bridal

Entertainment

Real Estate
Leasing

Consolidated

Million yen

Million yen

Million yen

Million yen

Million yen

Sales

97,50010,00075,7005,800

185,000

YoY change (%)

103.2

106.2

106.2

120.6

105.0

Segment profit

8,000

50

5,000

1,100

13,000YoY change (%)
120.1
13.0
150.0
147.3
Note: Segment profit is operating profit. Total segment profit differs from consolidated operating profit because of
consolidation adjustments.

127.0* These forecasts are based on judgments made in accordance with information available to the management at thetime these materials were prepared. Actual results may differ substantially from these forecasts for a number ofreasons.

4

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Millions of yen)
Second quarter of FY3/24(As of Sep. 30, 2023)

AssetsCurrent assets
Cash and deposits

38,29529,693

Accounts receivable-trade

13,114

6,248

Inventories

19,465

21,386

Other

8,015

6,361

Allowance for doubtful accounts

(54)

(42)

78,836

63,647

Buildings and structures, net

63,89865,566Land

31,021

31,021Others, net

14,37816,547

Total property, plant and equipment

109,299

113,136

7,007

6,910

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

Intangible assets
Investments and other assets
Guarantee deposits

6,628

6,511

Leasehold deposit

19,01319,013

Other

12,682

12,314

Allowance for doubtful accounts

(53)

(53)

Total investments and other assets

38,27237,786

154,579

157,832

233,416

221,480

Total non-current assets
Total assets

5

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

(Millions of yen)
Second quarter of FY3/24(As of Sep. 30, 2023)

FY3/23(As of Mar. 31, 2023)
Liabilities
Current liabilities
Accounts payable-trade17,963

12,484Current portion of long-term borrowings

10,647

8,859

Income taxes payable

2,012

676

Provision for bonuses

3,349

1,874

65

67

Other

14,865

13,501

Total current liabilities

48,904

37,46336,20635,038Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings
Retirement benefit liability

895

876

Asset retirement obligations

7,855

7,952

Other

7,302

7,599

Total non-current liabilities

52,26051,466

101,164

88,930Share capital

23,282

23,282

Capital surplus

23,795

22,597

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

87,43488,394

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

Total shareholders’ equity

131,022

131,227

682

846

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Remeasurements of defined benefit plans

265

230

Total accumulated other comprehensive income

947

1,076

281

245

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

6132,251

132,549

233,416

221,480

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)(Millions of yen)First six months of FY3/24(Apr. 1, 2023 – Sep. 30, 2023)

Net sales

75,59581,055

Cost of sales

47,70449,466Gross profit

27,89031,589Selling, general and administrative expenses

25,86927,790Operating profit

2,021

3,798

Interest income

32

31

Dividend income

19

21

Other

117

79

Total non-operating profit

168

132

Interest expenses

188

150

Loss on retirement of non-current assets

52

29

Other

268

194

Non-operating profit

Non-operating expenses

Total non-operating expenses

509

374

1,681

3,557

-

500

Subsidies for employment adjustment

254-

Total extraordinary income

254

500

Ordinary profit
Extraordinary income
Settlements received

Extraordinary losses
Impairment loss

634

137

Total extraordinary losses

634

137

1,300

3,920

Income taxes – current

529

1,065

Income taxes – deferred

258

826

Total income taxes

788

1,892

Profit512

2,027

Loss attributable to non-controlling interests

(88)

(35)

Profit attributable to owners of parent

600

2,063

Profit before income taxes

7

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)(Millions of yen)First six months of FY3/24(Apr. 1, 2023 – Sep. 30, 2023)

512

2,027

Valuation difference on available-for-sale securities

259

164

Remeasurements of defined benefit plans, net of tax

(38)

(35)

Total other comprehensive income

221

129

733

2,156

821

2,192

(88)

(35)

ProfitOther comprehensive income

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

8

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/23(Apr. 1, 2022 – Sep. 30, 2022)(Millions of yen)First six months of FY3/24(Apr. 1, 2023 – Sep. 30, 2023)

Profit before income taxes

1,300

3,920

Depreciation

4,591

4,710

Impairment loss

634

137

-

(500)

Increase (decrease) in retirement benefit liability

(33)

(71)

Interest and dividend income

(51)

(53)

Cash flows from operating activities

Settlements received

Interest expenses
Decrease (increase) in trade receivables

188

150

6,923

6,865

486

(1,921)

Increase (decrease) in trade payables(4,776)(5,479)

Increase (decrease) in accrued consumption taxes(1,330)(1,482)

Other(1,874)(790)

Subtotal

6,058

5,485

Decrease (increase) in inventories

Interest and dividend income received
Interests paid
Settlements received
Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities

41

47

(188)

(165)

-

500

(2,703)(2,987)

-

873

3,208

3,753

Cash flows from investing activities(2,403)(7,510)Purchase of intangible assets

(262)

(392)

Payments for leasehold and guarantee deposits

(70)

(310)

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

465

585

82

-

1,582

1,174

Net cash provided by (used in) investing activities(606)(6,454)Purchase of property, plant and equipment

Cash flows from financing activities
2,899

-

Proceeds from long-term borrowings

-

6,000

Repayments of long-term borrowings(7,996)(8,956)

Repayments of lease obligations
Purchase of shares of subsidiaries not resulting inchange in scope of consolidation
Purchase of treasury shares(1,070)

(963)

(125)

-

Net increase (decrease) in short-term borrowings

(0)

(877)

(428)

(1,104)(6,721)(5,902)

Effect of exchange rate change on cash and cash
equivalents(0)0Increase (decrease) in cash and cash equivalents(4,119)(8,602)

Cash and cash equivalents at beginning of period

37,93738,295

Cash and cash equivalents at end of period

33,817

29,693

Dividends paid
Net cash provided by (used in) financing activities

9

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/24 (Apr. 1, 2023 – Sep. 30, 2023)
Purchase and retirement of treasury shares
AOKI Holdings purchased 1 million treasury shares on May 16, 2023 and retired the same number of shares on May
29, 2023 pursuant to the resolution of the Board of Directors on May 15, 2023.
As a result, treasury shares increased 877 million yen due to the purchase of treasury shares, and capital surplus andtreasury shares decreased 1,165 million yen each due to the retirement of treasury shares.
Segment Information
First six months of FY3/23 (Apr. 1, 2022 – Sep. 30, 2022)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

OthersSubtotal (Note 1)

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

Sales
Fashion36,19036,19036,19036,190Bridal
4,202
4,202
4,202
4,202
Café complex
27,05427,05427,05427,054
Karaoke
4,698
4,698
4,698
4,698
Fitness
2,428
2,428
2,428
2,428
Other
330
330
12
342
342
Revenue fromcontracts with
36,1904,202
34,51274,904
12
74,91774,917
customers
Other revenues
20
657
677
677
677
External sales
36,1904,202
34,532657
75,582
12
75,59575,595Inter-segment sales
6
23
1,704
1,734
28
1,762
(1,762)and transfers
Total
36,1904,208
34,5552,362
77,31640
77,357(1,762)75,595
Segment profit (loss)
218
(29)
1,846
407
2,443
1
2,444
(423)
2,021
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The -423 million yen adjustment to segment profit (loss) includes 2,015 million yen in elimination for inter-segment
transactions, -20 million yen in amortization of goodwill, and -2,418 million yen in company-wide costs that cannot beallocated to any specific reportable segments. Company-wide costs mainly include administration expenses of theCompany that cannot be attributed to reportable segments.
3. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.
4. Segment information for the first six months of FY3/23 has been restated to reflect the significant revision in theinitial allocation of acquisition costs described in the Business Combinations section.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Fashion Business, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores set to be closed or converted, or expected to remain in the red, for which there islittle expectation of recovery; impairment losses of 31 million yen, 595 million yen and 8 million yen were booked
respectively in the first six months of FY3/23.
Significant change in goodwill
Goodwill was booked in the Entertainment Business as the Company has acquired the share of RUNSYSTEM CO.,LTD. and included this company in the scope of consolidation. The event caused an increase of goodwill by 407

10

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2024

million yen for the first six months of FY3/23.
First six months of FY3/24 (Apr. 1, 2023 – Sep. 30, 2023)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

OthersSubtotal (Note 1)

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

Sales
Fashion37,64137,64137,64137,641
Bridal
4,347
4,347
4,347
4,347
Café complex
29,94629,94629,94629,946
Karaoke
5,117
5,117
5,117
5,117
Fitness
2,611
2,611
2,611
2,611
Other
561
561
20
581
581
Revenue fromcontracts with
37,641
4,347
38,23680,22520
80,24680,246customers
Other revenues
39
770
809
809
809
External sales
37,641
4,347
38,276
770
81,03420
81,05581,055Inter-segment sales
2
0
1
1,954
1,959
31
1,990
(1,990)and transfers
Total
37,643
4,348
38,2772,724
82,99451
83,046(1,990)81,055
Segment profit (loss)
437
(434)
3,735
461
4,200
(11)
4,188
(389)
3,798
Notes: 1. The “others” classification is businesses not included in reportable segments such as advertising-related business.
2. The -389 million yen adjustment to segment profit (loss) includes 2,124 million yen in elimination for inter-segment
transactions, -40 million yen in amortization of goodwill, and -2,473 million yen in company-wide costs that cannot beallocated to any specific reportable segments. Company-wide costs mainly include administration expenses of theCompany that cannot be attributed to reportable segments.
3. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Fashion Business and the Entertainment Business, impairment losses were recognized for operating stores set
to be closed or converted for which there is little expectation of recovery; impairment losses of 20 million yen and
116 million yen were booked respectively in the first six months of FY3/24.
Business Combinations
Significant revision of the initial allocation of acquisition costs in comparative information
Regarding a business combination with RUNSYSTEM CO., LTD. conducted on June 30, 2022 (deemed acquisitiondate), provisional accounting methods were used for the allocation of the acquisition cost in the second quarter of
FY3/23. The allocation of the acquisition cost was finalized at the end of the previous fiscal year.
With the finalization of this provisional accounting method, the comparative information included in the quarterly
consolidated financial statements for the first six months of FY3/24 reflects a significant revision in the initial
allocation of acquisition costs. The provisional amount of goodwill of 777 million yen was reduced by the sameamount due to the finalization of the accounting method, and the amount of goodwill of 407 million yen and trade
mark rights of 1,142 million yen were recorded.
As a result, amortization of goodwill decreased by 18 million yen, amortization of trade mark rights increased by 14
million yen, and operating profit, ordinary profit and profit before income taxes increased by 4 million yen each in
the quarterly consolidated statement of income for the first six months of FY3/23.
* This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

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