August 4, 2017

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2018
(Three Months Ended June 30, 2017)[Japanese GAAP]
Company name: AOKI Holdings Inc.
Listings: TSE First Section
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:
August 7, 2017
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on August 4, 2017 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2017 (April 1, 2017 – June 30, 2017)(1) Consolidated results of operations
Sales

Operating profit

Million yen%
Million yen%
Three months ended Jun. 30, 201746,254(0.1)
914 (44.6)
46,3142.5
1,650 (36.6)
Three months ended Jun. 30, 2016
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2017:
Three months ended Jun. 30, 2016:

Three months ended Jun. 30, 2017
Three months ended Jun. 30, 2016

Net income per share
Yen
3.74
9.75

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
Million yen%
Million yen%
862 (47.1)
325 (62.6)
1,629 (37.7)
870 (52.9)
418 (down 29.1%)
590 (down 71.1%)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Jun. 30, 2017234,697
142,016
As of Mar. 31, 2017234,681
143,906
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2017:
141,929

Equity ratio
%
60.5
61.3
As of Mar. 31, 2017: 143,818

2. Dividends
1Q-endYen

2Q-endYen
21.00

FY3/17
FY3/1822.00
FY3/18 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

Year-end
Yen
22.00

-

22.00

Total
Yen
43.00
44.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2018 (April 1, 2017 – March 31, 2018)
Sales

Operating profit

Ordinary profit

Million yen%
Million yen%
Million yen
Full year
200,550
3.4
14,5000.4
14,000Note: Revisions to the most recently announced consolidated forecast: None%
0.8

(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
7,600
3.3
87.34

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

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Jun. 30, 2017:

90,649,504 shares

As of Mar. 31, 2017:

90,649,504 shares

As of Mar. 31, 2017:

3,404,290 shares

Three months ended Jun. 30, 2016:

89,301,220 shares

2) Number of shares of treasury stock at the end of the period
As of Jun. 30, 2017:

3,678,480 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2017:87,121,313 shares

Note 1: The current quarterly summary report is not subject to quarterly review procedures.
Note 2: Cautionary statement with respect to forecasts and other matters
Cautionary statement with respect to forecasts
Forecasts regarding future performance 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 3 of the attachments regarding
preconditions or other related matters for the forecast shown above.

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

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

6

Quarterly Consolidated Statement of Income

6

Quarterly Consolidated Statement of Comprehensive Income

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Segment and Other Information

8

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, the slow recovery of the Japanese economy continued due to an
improvement in jobs and for other reasons. Consumer spending has been firm but was nevertheless somewhat
sluggish mainly because of a strong desire among consumers to hold back on purchases.
During the first quarter, the AOKI Group implemented various measures in all business segments as discussed below.
Sales decreased 0.1% year-on-year to 46,254 million yen, but operating profit decreased 44.6% to 914 million yen.
Ordinary profit decreased 47.1% to 862 million yen and profit attributable to owners of parent decreased 62.6% to325 million yen.
Operating results by segment are as follows.
Fashion Business
At AOKI, the men’s and women’s lineups of Truly Washable Suits, which can be stretched vertically andhorizontally to maximize ease of movement, was expanded to meet the diverse needs and wants of customers. For
the CAFÉ SOHO casual apparel brand, AOKI added new Cool Biz business-to-casual styles that target mainly
customers between the ages of 30 and 50. During the first quarter, AOKI opened seven stores including two
stand-alone Size MAX stores, which specialize in plus-size apparel. Five stores were closed to improve theefficiency of AOKI’s operations. As a result, there were 575 stores at the end of the first quarter compared with 573
stores at the end of the previous fiscal year.
ORIHICA enlarged the selection of apparel using THE 3rd SUITS brand, giving this brand a new look by adding
new functions, fabrics and color schemes. ORIHICA also strengthened the lineup of Washable BIZ Style apparel,
including Super No-Iron Shirts, that feature functions and materials that are ideal for summer weather. Two newstores were opened during the first quarter, raising the number of stores from 145 to 147 at the end of the firstquarter.
Sales at existing stores in this segment were lower. One reason was a decline following the strong sales during thespecial sales events in 2016 at AOKI stores that reopened after remodeling. As a result, sales decreased 3.8% to27,169 million yen and operating profit decreased 71.9% to 157 million yen.
Anniversaire and Bridal Business
ANNIVERSAIRE INC. operates guesthouse-style wedding and reception facilities. There were more sales
promotion and other marketing activities that emphasized the distinctive theme of each location and the powerful
ANNIVERSAIRE brand. Wedding and reception facilities also continued to strengthen the Proposal Plan and otherservices that can create new channels for attracting customers.
Sales increased 1.8% to 6,902 million yen and operating profit decreased 2.5% to 640 million yen.
Karaoke Facility Operations Business
The karaoke business of VALIC Co., Ltd. increased the number of limited-time-only menu items for spring andsummer and conducted a marketing campaign using tie-ups with popular characters. In addition, 10 locations were
remodeled for improvements that include more “concept rooms” as VALIC continued to take actions aimed atreinvigorating existing karaoke facilities. During the first quarter, the number of locations decreased by one to 184
as we opened two karaoke facilities and closed three facilities.
As a result, sales decreased slightly to 4,203 million yen and there was an operating loss of 192 million yen
compared with a loss of 146 million yen one year earlier.

2

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

Café Complex Operations Business
The café complex business of VALIC Co., Ltd. remodeled 14 cafés by adding sections exclusively for women,
installing showers and making other improvements. In a move to reinvigorate existing cafés, the selection of fooditems was expanded. VALIC opened 10 facilities, including its first locations in Ehime, and closed one facility
during the first three months. As a result, there were 355 café complexes at the end of the first quarter comparedwith 346 at the end of the previous fiscal year.
Sales increased 12.5% to 7,983 million yen due to strong sales at existing facilities, but operating profit decreased
77.2% to 89 million yen because of higher expenses for new café openings and renovation.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the first quarter under review increased 16 million yen from the end of the previous fiscal
year to 234,697 million yen.
Current assets decreased 677 million yen from the end of the previous fiscal year. Although cash in hand and inbanks increased 3,187 million yen due to short-term debt among other factors, accounts receivable-trade decreased
4,364 million yen due to seasonal reasons and other factors. Fixed assets increased 693 million yen from the end of
the previous fiscal year as tangible fixed assets increased 956 million yen due to new store openings and otherfactors.
Liabilities
Current liabilities increased 1,310 million yen from the end of the previous fiscal year. Short-term debt increased
5,000 million yen, while there was a decrease of 3,673 million yen in accounts payable-trade resulting from adecrease in procurement and seasonal reasons. Long-term liabilities increased 595 million yen due to an increase of
475 million yen in other long-term liabilities including lease obligations.
Net assets
Net assets decreased 1,889 million yen from the end of the previous fiscal year. There was a decrease of 1,593
million yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus, and anincrease of 388 million yen in treasury stock due to the purchase.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
First quarter sales were somewhat below the outlook because of slow sales at existing stores in the Fashion Business.
However, operating profit was in line with the fiscal year forecast due to cost cutting at all group companies. As aresult, there are no revisions to the forecast that was announced on May 11, 2017.

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/18(As of Jun. 30, 2017)

FY3/17(As of Mar. 31, 2017)
AssetsCurrent assets
Cash in hand and in banks

28,608

Accounts receivable-trade

10,5086,143

Inventories

26,90525,468Other current assets

8,974

10,908

Allowance for doubtful accounts

(32)

(30)

74,96374,285

Total current assets

31,795

Fixed assets
Tangible fixed assets
Buildings and structures, net

61,56862,125

Land

36,95336,953

Other tangible fixed assets, net

13,164

13,564

Total tangible fixed assets

111,686

112,642

6,301

6,154

Guarantee deposits

8,259

8,309

Leasehold deposit

21,066

20,938Other investments and other assets

12,444

12,406

Allowance for doubtful accounts

(40)

(40)

Intangible fixed assets
Investments and other assets

Total investments and other assets

41,73041,614

159,718

160,411

234,681234,697

19,15915,486-

5,000

Current portion of long-term debt

4,150

4,150

Accrued income taxes

1,603

321

Accrued bonuses for employees

1,647

941

89

29

Other current liabilities

12,546

14,579Total current liabilities

39,19740,507

37,12537,125

1,949

1,971

1,069

1,052

Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Short-term debt

Accrued bonuses for directors and statutory auditors

Long-term liabilities
Long-term debt
Accrued retirement benefits for directors and statutory
auditors
Accrued costs for customer point program
Net defined benefit liability

976

1,006

Asset retirement obligations

5,513

5,598

Other long-term liabilities

4,943

5,419

Total long-term liabilities

51,57752,172

90,774

92,680Total liabilities

4

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

(Millions of yen)First quarter of FY3/18(As of Jun. 30, 2017)

FY3/17(As of Mar. 31, 2017)
Net assets
Shareholders’ equity
Common stock

23,282

23,282

Capital surplus

27,833

27,833Retained earnings

96,753

95,159Treasury stock(4,325)(4,713)

Total shareholders’ equity

143,544

141,562

Unrealized gain on securities

576

642

Remeasurements of defined benefit plans

(302)

(276)

Total accumulated other comprehensive income

274

366

87

87

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

5

143,906

142,016

234,681234,697

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Three-month Period)First three months of FY3/17(Apr. 1, 2016 – Jun. 30, 2016)(Millions of yen)First three months of FY3/18(Apr. 1, 2017 – Jun. 30, 2017)

Sales

46,314

46,254

Cost of sales

26,36526,937Gross profit

19,94819,316

Selling, general and administrative expenses

18,29818,402

Operating profit

1,650

914

Interest income

27

27

Dividend income

59

25

Rental income on real estate

152

141

Other

46

44

Total non-operating profit

285

239

Non-operating profit

Non-operating expenses
Interest expenses

78

86

Expenses on sub-leased real estate

126

114

Other

101

90

307

291

1,629

862

Total non-operating expenses
Ordinary profit
Extraordinary gains
Gain on sales of investment securities

29

-

29

-

Impairment loss

68

197

Loss on disaster95-

Total extraordinary gains
Extraordinary losses

Total extraordinary losses

164

197

1,494

664

Current income taxes

357

298

Deferred income taxes

266

40

Total income taxes

624

338

Profit870

325

Profit attributable to owners of parent

870

325

Profit before income taxes

6

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/17(Apr. 1, 2016 – Jun. 30, 2016)(Millions of yen)First three months of FY3/18(Apr. 1, 2017 – Jun. 30, 2017)

870

325

(309)

66

ProfitOther comprehensive income
Unrealized gain on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

29

26

(280)

92

590

418

590

418

-

-

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

7

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First three months of FY3/18 (Apr. 1, 2017 – Jun. 30, 2017)
Purchase of treasury stock
The Company has purchased 273,000 shares of its treasury stock pursuant to the resolution of the Board of Directors
on February 9, 2017. As a result, treasury stock increased 388 million yen during the first three months of FY3/18 to
4,713 million yen at the end of the first quarter of FY3/18.
Segment and Other Information
First three months of FY3/17 (Apr. 1, 2016 – Jun. 30, 2016)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)
Reportable segment
Café
ComplexOperations

Karaoke
Anniversaire
Facility
and Bridal
Operations

FashionAmounts shown on
Adjustment quarterly consolidated
statement of income(Note 1)
(Note 2)

Total

Sales
External sales
Inter-segment sales
and transfers

28,235

6,777

4,203

7,098

46,314-46,314

1

4

1

-

6

(6)

-

Total

28,236

6,781

4,205

7,098

46,321(6)

46,314

Segment profit (loss)
560
657
(146)
393
1,464
185
1,650
Notes: 1. The 185 million yen adjustment to segment profit (loss) includes 1,090 million yen in elimination for inter-segment
transactions, and -905 million yen in company-wide costs that cannot be allocated to any specific reportable segments.
Company-wide costs mainly include administration expenses of the Company that cannot be attributed to reportablesegments.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

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, impairment losses were recognized for operating stores set to be rebuilt for which there islittle expectation of recovery. Impairment losses of 68 million yen was booked in the first three months of FY3/17.

8

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2018

First three months of FY3/18 (Apr. 1, 2017 – Jun. 30, 2017)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)Amounts shown onquarterly
Adjustment
consolidated(Note 1)statement of income(Note 2)

Reportable segment
FashionAnniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

Total

Sales
External sales
Inter-segment sales
and transfers

27,168

6,899

4,202

7,983

46,254-

46,254

1

2

0

-

4

(4)

-

Total

27,169

6,902

4,203

7,983

46,259(4)

46,254

Segment profit (loss)
157
640
(192)
89
695
218
914
Notes: 1. The 218 million yen adjustment to segment profit (loss) includes 1,063 million yen in elimination for inter-segment
transactions, and -844 million yen in company-wide costs that cannot be allocated to any specific reportable segments.
Company-wide costs mainly include administration expenses of the Company that cannot be attributed to reportablesegments.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

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 ANNIVERSAIRE and Bridal Business, the Karaoke Facility Operations Business andthe Café Complex Operations Business, impairment losses were recognized for operating stores set to be closed or
rebuilt for which there is little expectation of recovery; impairment losses of 87 million yen, 4 million yen, 99
million yen and 6 million yen were booked respectively in the first three months of FY3/18.

* 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.

9