November 7, 2019

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2020
(Six Months Ended September 30, 2019)[Japanese GAAP]
Listings: TSE First Section
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: http://www.aoki-hd.co.jp/
Representative:
Akihiro Aoki, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
November 8, 2019
Scheduled date of payment of dividend:
December 4, 2019
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 7, 2019 at 14:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2019
(April 1, 2019 – September 30, 2019)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toSales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Six months ended Sep. 30, 201982,795(2.0)
377 (75.8)
(496)
(988)
Six months ended Sep. 30, 2018
84,476
(2.0)
1,563
10.9
533 (44.5)(1,056)
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2019:(1,176) (-%)
Six months ended Sep. 30, 2018:(974) (-%)

Six months ended Sep. 30, 2019
Six months ended Sep. 30, 2018

Net income per share
Yen(11.51)(12.22)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Sep. 30, 2019
226,857
141,759
As of Mar. 31, 2019
232,056
145,671
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2019:
141,648

Equity ratio
%
62.4
62.7
As of Mar. 31, 2019: 145,595

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

Year-end
Yen
31.00

Total
Yen

FY3/1929.00
FY3/2023.00
FY3/20 (forecasts)
23.00
Note: Revisions to the most recently announced dividend forecast: None
Breakdown of 2Q-end dividends for FY3/19: Ordinary dividends: 22.00 yen; Commemorative dividends: 7.00 yen
Breakdown of Year-end dividends for FY3/19: Ordinary dividends: 23.00 yen; Commemorative dividends: 8.00 yen

60.00
46.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2020 (April 1, 2019 – March 31, 2020)
Sales

Operating profit

Ordinary profit(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
5,400
17.3
62.88

Million yen%
Million yen%
Million yen%
192,500(1.3)
12,300(8.8)
11,300(5.0)
Full year
Note: Revisions to the most recently announced consolidated forecast: Yes
The sales and ordinary profit forecasts have been revised. Please refer to “(3) Explanation of Consolidated Forecast and Other
Forward-looking Statements” on page 4 for further information.

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

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Sep. 30, 2019:

90,649,504 shares

As of Mar. 31, 2019:

90,649,504 shares

As of Mar. 31, 2019:

4,724,330 shares

Six months ended Sep. 30, 2018:

86,511,757 shares

2) Number of shares of treasury stock at the end of the period
As of Sep. 30, 2019:

4,829,270 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2019:85,926,755 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.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts on Friday, November 22, 2019.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance

Pages
2

(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

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

4

2. Quarterly Consolidated Financial Statements and Notes

6(1) Quarterly Consolidated Balance Sheet

6(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

8

Quarterly Consolidated Statement of Income

8

Quarterly Consolidated Statement of Comprehensive Income

9(3) Quarterly Consolidated Statement of Cash Flows

10(4) Notes to Quarterly Consolidated Financial Statements

11

Going Concern Assumption

11

Significant Changes in Shareholders’ Equity

11

Additional Information

11

Segment and Other Information

12

1

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In prior years, rent income of real estate and the rent cost of real estate were included in non-operating profit, selling,
general and administrative expenses, and non-operating expenses. Beginning with the first quarter of the current
fiscal year, rent income of real estate and the rent cost of real estate are instead included in sales and cost of sales.
Comparisons and analysis using results of operations in the first half of the previous fiscal year are based on figuresthat have been restated to conform with this change.
In the first half of the current fiscal year, the Japanese economy continued to recover slowly due to improvements inthe labor market and personal income and other reasons. However, the economic outlook remains unclear, in partdue to signs of an economic slowdown in some sectors, amid uncertainty caused by the U.S.-China trade friction andother global events.
The AOKI Group implemented various measures in all business segments as explained below. Sales decreased 2.0%
year-on-year to 82,795 million yen, operating profit decreased 75.8% to 377 million yen. There was an ordinary lossof 496 million yen compared with a profit of 533 million yen one year earlier. Loss attributable to owners of parent
was 988 million yen compared with a loss of 1,056 million yen one year earlier.
Operating results by segment are as follows.
As AOKI revised its reportable segments in the first quarter of the current fiscal year, a comparative analysis ofsegment performance is presented based on the revised segments.
Fashion Business
AOKI continued to enlarge the lineups of men’s and women’s Cool Biz apparel, which features a variety offunctions for comfort as summer heat becomes more intense year after year. There were also actions to increase salesof personal order suits, including the full-scale launch of a website for purchasing these suits. During the first half,
six stores were opened, including two stores exclusively for Size MAX. During the same period, 49 stores wereclosed due to examinations of stores from the standpoints of profitability and AOKI’s dominant areas. These
closings include stores closed for relocation and conversions to a café complex or other business format. As a result,
there were 523 AOKI stores at the end of the first half compared with 566 at the end of the previous fiscal year.
ORIHICA increased its lineup of Cool Biz apparel and apparel using THE THIRD SUITS brand, adding new items
for men and women. Functional products were another highlight of the first half, including original ORIHICA
products like white shirts with a light-blocking fabric, shirts with a fabric that is resistant to soiling and stains, and3-way (briefcase, shoulder bag, backpack) business bags. Following the closure of six stores in order to improve theefficiency of operations, ORIHICA had 125 stores at the end of the first half compared with 131 at the end of theprevious fiscal year.
First half sales in this segment decreased 4.6% from one year earlier to 42,580 million yen. Although sales benefited
from a rush to make purchases prior to Japan’s October 2019 consumption tax increase, existing store sales wereslow mainly because of the ongoing shift in the types of business apparel people prefer and the negative impact ofweather. The first half operating loss was 1,377 million yen compared with a 1,558 million yen loss one year earlier.
Anniversaire and Bridal Business
ANNIVERSAIRE INC., which operates guesthouse-style wedding and reception facilities, took many actions to
attract more customers. One step was a major redesign of the website of every location in order to communicate
more clearly the unique characteristics of these wedding and reception facilities. Another measure was thepromotion at four locations of TREND COLLECTIONS in the Tokyo area, a stylish and glamorous wedding format
that incorporates current trends in the wedding market as much as possible. Despite these actions, the number of
weddings was lower than one year earlier mainly because of the smaller number of wedding and reception locations
and changing market conditions.

2

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

Sales decreased 9.7% to 11,282 million yen and there was an operating loss of 34 million yen compared with a profitof 649 million yen one year earlier.
Entertainment Business
KAIKATSU CLUB, a chain of café complexes, completed renovations of 37 locations during the first half.
Improvements include a reconfigured booth layout, the addition of karaoke rooms, no-smoking booths and showers,
and other changes. In addition, cafés increased activities for meeting customers’ needs, such as by holding a
Hiyashimen (cold noodles) and Donburi (rice bowl dishes) Fair. This business has started a new format thatcombines a KAIKATSU CLUB with a FiT24 fitness center, which uses a self-service format and is open 24 hours.
The new format has been performing well by enabling customers to utilize the services and equipment of both a caféclub and fitness center.
In the COTE D’AZUR karaoke business, 12 locations were remodeled during the first half, including the installationof karaoke units with the latest technologies and expansion of space for children. In addition, a Summer Menu Fair
was held through a collaboration with KAIKATSU CLUB, more locations added ice cream machines to their
beverage bars, and other improvements were made in order to make existing locations more appealing.
During the first half, 46 KAIKATSU CLUBs and 20 FiT24 fitness centers were opened, and one COTE D’AZUR
was closed. This business segment had 564 locations at the end of the first half compared with 499 at the end of theprevious fiscal year.
Sales increased 5.7% to 28,327 million yen due to contributions from new facilities and strong existing-store sales.
Operating profit decreased 26.5% to 1,427 million yen due to higher expenses related to new store openings.
Real Estate Leasing Business
Segment sales increased 12.3% to 1,727 million yen mainly because of an increase in the subleasing of closed
properties in the fashion business and COTE D’AZUR karaoke business. Operating profit decreased 7.3% to 322
million yen due in part to an increase in subleasing expenses.
(2) Explanation of Financial Position
1) Balance sheet position
AssetsTotal assets at the end of the second quarter under review decreased 5,198 million yen from the end of the previous
fiscal year to 226,857 million yen due to seasonal factors.
Current assets decreased 8,846 million yen from the end of the previous fiscal year. There was a decrease of 7,054
million yen in accounts receivable-trade due to seasonal factors. Fixed assets increased 3,647 million yen from theend of the previous fiscal year as tangible fixed assets increased 3,935 million yen due to new store openings andother factors.
Liabilities
Current liabilities decreased 1,824 million yen from the end of the previous fiscal year. Short-term borrowings
increased 5,000 million yen, while there were decreases of 6,000 million yen in accounts payable-trade mainly due
to seasonal factors and 1,423 million yen in other current liabilities including accounts payable-other. Long-term
liabilities increased 537 million yen mainly due to an increase of 713 million yen in other long-term liabilities
including lease obligations.
Net assets
Net assets decreased 3,911 million yen from the end of the previous fiscal year. There was a decrease of 3,652
million yen in retained earnings due to a loss attributable to owners of parent and dividend from surplus.

3

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter under review decreased 259 million
yen over the end of the previous fiscal year to 26,298 million yen.
Cash flows from operating activities
Net cash provided by operating activities increased 3,949 million yen to 4,153 million yen on a year-on-year basis.
The principal factors were depreciation and amortization of 4,246 million yen and a decrease of 7,054 million yen inaccounts receivable-trade, while there were a loss before income taxes of 1,153 million yen and a decrease of 6,000
million yen in accounts payable-trade.
Cash flows from investing activities
Net cash used in investing activities increased 3,215 million yen to 5,996 million yen on a year-on-year basis. Thiswas mainly due to the acquisition of tangible fixed assets of 5,900 million yen for new store openings, renewals andother factors.
Cash flows from financing activities
Net cash provided by financing activities increased 5,401 million yen to 1,583 million yen on a year-on-year basis.
This was mainly due to a short-term borrowings of 5,000 million yen and long-term borrowings of 2,000 million yen,while there were cash dividends paid of 2,662 million yen, scheduled repayment of long-term borrowings of 1,325
million yen, and repayments of lease obligations of 1,029 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
First half sales and ordinary profit were somewhat below the pace needed to reach these forecasts.
We have reexamined the fiscal year forecast based on first half performance. This reexamination incorporated
business plans and other items as well as a review by each business unit of its plans to open and close stores or otherfacilities. This process resulted in the decision to revise the forecasts for sales and ordinary profit that wereannounced on May 10, 2019. The entertainment business has increased its fiscal year new store plan from the initial
100 to 130 stores.
Consolidated forecast for the fiscal year ending March 31, 2020 (April 1, 2019 – March 31, 2020)
Sales

Operating profit

Ordinary profit

Profit attributableto owners of parent

Net income per
share(Million yen)

(Million yen)

(Million yen)

(Million yen)

(Yen)

Previous forecast (A)(announced on May 10, 2019)

194,050

12,30011,750

5,400

62.85

Revised forecast (B)192,500

12,30011,300

5,400

62.88

Change (B - A)

(1,550)

-

(450)

-

(0.8)

-

(3.8)

-

11,8904,602

Percentage change (%)

Previous fiscal year
195,054
13,491(ended Mar. 31, 2019)
Note: Figures reflect the reclassification of real estate leasing.

4

53.34

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

Our business segment forecasts were also revised as follows.
Forecast by business segment for the fiscal year ending March 31, 2020
Anniversaireand Bridal

Fashion

Sales

Entertainment

Real Estate
Leasing

Consolidated(Million yen)

(Million yen)

(Million yen)

(Million yen)

(Million yen)

108,000

24,70058,5003,530

192,500

YoY change (%)

94.4

97.1

108.1

113.3

98.7

Segment profit

7,500

1,500

2,800

790

12,300YoY change (%)

103.3

69.1

88.0

123.8

91.2

Note: Segment profit is operating profit. The total segment profits differ from consolidated operating profit because of
consolidation adjustments.
* Above forecasts are based on judgments made in accordance with information available to the management at the time thesematerials were prepared, and actual results may differ substantially from these forecasts for a number of reasons.

5

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/19(As of Mar. 31, 2019)(Millions of yen)
Second quarter of FY3/20(As of Sep. 30, 2019)

AssetsCurrent assets
Cash in hand and in banks

26,55826,298

Accounts receivable-trade

11,793

4,738

Inventories

25,57425,855

Other current assets

9,061

7,242

Allowance for doubtful accounts

(38)

(33)

72,94864,102

Buildings and structures, net

60,93364,294Land

36,941

36,941

Total current assets
Fixed assets
Tangible fixed assets

Other, net

12,083

12,658

Total tangible fixed assets

109,958

113,893

5,932

6,005

Guarantee deposits

7,881

7,813

Leasehold deposit

20,536

20,451Other investments and other assets

14,838

14,631Intangible fixed assets
Investments and other assets

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

43,21642,856

159,107

162,755

232,056

226,857

Total fixed assets
Total assets

6

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

(Millions of yen)
Second quarter of FY3/20(As of Sep. 30, 2019)

FY3/19(As of Mar. 31, 2019)
Liabilities
Current liabilities
Accounts payable-trade18,162

12,161

Short-term borrowings

-

5,000

2,650

3,650

579

349

2,078

1,945

83

46

Other current liabilities

13,624

12,200Total current liabilities

37,17735,352

34,82534,500872

733

Retirement benefit liability

1,094

1,134

Asset retirement obligations

6,466

6,714

Current portion of long-term borrowings
Accrued income taxes
Accrued bonuses for employees
Accrued bonuses for directors and statutory auditors

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

Other long-term liabilities

5,949

6,663

Total long-term liabilities

49,20849,74586,38585,098

Share capital

23,282

23,282

Capital surplus

27,84627,823Retained earnings

100,488

96,836

Treasury stock(6,302)(6,387)

Total shareholders’ equity

145,315

141,555

Unrealized gain on securities

370

154

Remeasurements of defined benefit plans

(89)

(61)

Total accumulated other comprehensive income

280

92

75

110

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

7

145,671

141,759

232,056

226,857AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

(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 FY3/19(Apr. 1, 2018 – Sep. 30, 2018)(Millions of yen)First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)

Sales

84,47682,795

Cost of sales

50,28350,563Gross profit

34,192

32,231

Selling, general and administrative expenses

32,62831,854

Operating profit

1,563

377

45

39

Dividend income

41

44

Other

106

88

Total non-operating profit

193

173

Interest expenses

155

138

Loss on disposal of fixed assets
Expenses for events to celebrate AOKI’s 60th
anniversary
Other

316

551

458

-

294

356

1,223

1,047

533

(496)

Non-operating profit
Interest income

Non-operating expenses

Total non-operating expenses
Ordinary profit (loss)
Extraordinary gains
Gain on sale of fixed assets-

55

Gain on sales of investment securities

27

145

Gain on reversal of stock acquisition rights

7

4

Total extraordinary gains

35

205

Extraordinary losses
Impairment loss

1,524

789

Loss on liquidation of subsidiaries and associates

444-

Loss on disaster48-

Loss on valuation of investment securities

-

72

2,017

861

Total extraordinary losses
Loss before income taxes(1,448)(1,153)Current income taxes

325

323

Deferred income taxes

(717)

(487)

Total income taxes

(391)

(164)

Loss

(1,056)(988)

Loss attributable to owners of parent(1,056)(988)

8

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)(Millions of yen)First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)(1,056)(988)

Unrealized gain on securities

49

(215)

Remeasurements of defined benefit plans, net of tax

32

27

Total other comprehensive income

82

(188)

(974)

(1,176)(974)(1,176)--Loss
Other comprehensive income

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

9

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)(Millions of yen)First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)

Loss before income taxes(1,448)(1,153)

Depreciation and amortization

4,089

4,246

Impairment loss
Increase (decrease) in provision for retirement benefits
for directors (and other officers)
Increase (decrease) in accrued costs for customer point
programIncrease (decrease) in retirement benefit liability

1,524

789

(2,018)

-

(208)

(138)

89

81

Interest and dividend income

(86)

(84)

Interest expenses

155

138

Loss (gain) on sales of investment securities

(27)

(145)

Loss on liquidation of subsidiaries and associates

444-

Decrease (increase) in accounts receivable-trade

7,429

7,054

Decrease (increase) in inventories(1,672)(280)

Increase (decrease) in accounts payable-trade(5,328)(6,000)

Increase (decrease) in accrued consumption taxes(1,228)

(676)

Other

1,515

478

Subtotal

3,228

4,308

71

81

(154)

(137)

Cash flows from operating activities

Interest and dividend income received
Interests paid
Income taxes paid

(3,818)(1,564)

Income taxes refund

875

1,465

Net cash provided by operating activities

203

4,153

Payments for acquisition of tangible fixed assets(2,699)(5,900)

Payments for acquisition of intangible fixed assets

(294)

(672)

Payments for leasehold and guarantee deposits

(481)

(880)

-

836

769

787

Cash flows from investing activities

Proceeds from sales of investment securities
Net decrease (increase) in trust beneficiary rights
Other

(75)

(167)

(2,780)(5,996)

Net increase (decrease) in short-term borrowings

-

5,000

Proceeds from long-term borrowings

-

2,000

(325)

(1,325)(1,450)(1,029)Net cash used in investing activities
Cash flows from financing activities

Repayments of long-term borrowings
Repayments of lease obligations
Payments for purchase of treasury stock
Dividends paid
Other
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents

(138)

(194)

(1,903)(2,662)-(205)(3,818)

1,583

(0)

0

Increase (decrease) in cash and cash equivalents(6,395)(259)

Cash and cash equivalents at beginning of period

32,17526,558Cash and cash equivalents at end of period

25,78026,298

10

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/20 (Apr. 1, 2019 – Sep. 30, 2019)
Purchase of treasury stock
AOKI Holdings has purchased 183,000 shares of its treasury stock pursuant to the resolution of the Board of
Directors on August 13, 2019, and sold 82,000 shares for restricted stock compensation for directors pursuant to theresolution of the Board of Directors on June 27, 2019. As a result, treasury stock increased 84 million yen including
shares resulting from purchase of odd-lot shares during the first six months of FY3/20 to 6,387 million yen at theend of the second quarter of FY3/20.
Additional Information
Reclassifications
In prior years, rent income of real estate and the rent cost of real estate were included in non-operating profit, selling,
general and administrative expenses, and non-operating expenses. Beginning with the first quarter of the current
fiscal year, rent income of real estate and the rent cost of real estate are instead included in sales and cost of sales.
This change was made to more properly incorporate the real estate leasing business in the financial statements. Realestate leasing is now positioned as one of the major businesses of AOKI Holdings. Rent income of real estate is aconsistent source of earnings and more growth of this income is expected as the number of leased properties
increases. In addition, the profitability of this business has been properly managed by the relevant department.
Consolidated financial statements for the first six months of the previous fiscal year have been restated to reflect
these reclassifications.
Accordingly, “rental income of real estate” under “non-operating profit” of 260 million yen, “rent cost of real estate”
under “non-operating expenses” of 196 million yen and real estate-related expenses, which was included in “selling,
general and administrative expenses,” of 16 million yen in the consolidated statement of income for the first six
months of the previous fiscal year has been reclassified. As a result, sales and cost of sales increased 562 million yen
and 515 million yen, respectively.

11

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

Segment and Other Information
First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
Anniversaire
Real EstateEntertainment
and Bridal
Leasing

Fashion

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

Sales
External sales
Inter-segment sales
and transfers
Total

44,642

12,481

26,788562

84,476-84,476

1

16

0

975

993

(993)

-

44,644

12,497

26,7881,538

85,469(993)

84,476

Segment profit (loss)(1,558)
649
1,940
347
1,378
185
1,563
Notes: 1. The 185 million yen adjustment to segment profit (loss) includes 1,777 million yen in elimination for inter-segment
transactions, and -1,592 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed toreportable segments.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Material impairment losses related to fixed assets
In the Fashion Business, the Entertainment Business, impairment losses were recognized for operating stores andsubleasing stores set to be closed, relocated or converted, or expected to remain in the red; impairment losses of 168
million yen and 1,356 million yen were booked respectively in the first six months of FY3/19.
First six months of FY3/20 (Apr. 1, 2019 – Sep. 30, 2019)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
Anniversaire
Real EstateEntertainment
and Bridal
Leasing

Fashion

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

Sales
External sales
Inter-segment sales
and transfers
Total

42,578

11,27828,327611

82,795-82,795

1

3

0

1,115

1,120

(1,120)-42,58011,282

28,327

1,727

83,916(1,120)82,795

Segment profit (loss)(1,377)
(34)
1,427
322
337
40
377
Notes: 1. The 40 million yen adjustment to segment profit (loss) includes 2,105 million yen in elimination for inter-segment
transactions, and -2,065 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed toreportable segments.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Material impairment losses related to fixed assets
In the Fashion Business, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores set to be closed or converted for which there is little expectation of recovery andsubleasing stores expected to remain in the red; impairment losses of 278 million yen, 404 million yen and 106
million yen were booked respectively in the first six months of FY3/20.
3. Information related to revisions for reportable segments
In the first quarter of FY3/20, the Karaoke Facility Operations Business and Café Complex Operations Businesswere combined to reflect the reorganization of management and the increasing diversity of the operations. The
combined business was renamed the Entertainment Business.

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AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2020

As noted in the section “Additional Information, Reclassifications,” the business related to real estate leasing is
reclassified and presented as a separate segment titled “Real Estate Leasing Business.”
The segment information for the first six months of FY3/19 is prepared and disclosed based on the reportablesegments after the revision.

* 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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