August 5, 2022

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2023
(Three Months Ended June 30, 2022)[Japanese GAAP]
Listings: Tokyo Stock Exchange
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://www.aoki-hd.co.jp/
Representative:
Hidekazu Azuma, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
August 8, 2022
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 5, 2022 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, 2022
(April 1, 2022 – June 30, 2022)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Three months ended Jun. 30, 2022
39,227
19.2
1,547
1,390
1,255
Three months ended Jun. 30, 2021
32,90525.6(1,457)(1,583)(1,738)
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2022:
1,465 (-%)
Three months ended Jun. 30, 2021:(1,699) (-%)

Three months ended Jun. 30, 2022
Three months ended Jun. 30, 2021

Net income per
share
Yen
14.79
(20.51)

Diluted net income
per shareYen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
230,380
128,840
As of Jun. 30, 2022
233,008
127,641
As of Mar. 31, 2022
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2022: 128,231

Equity ratio
%
55.7
54.5
As of Mar. 31, 2022: 127,082

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/22
5.00
FY3/23
FY3/23 (forecasts)
7.00
Note: Revisions to the most recently announced dividend forecast: None-

Year-end
Yen

Total
Yen
5.00

10.00

8.00

15.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)(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
166,100
7.2
7,700
41.5
7,000
60.5
3,250
26.8
38.28
Note: Revisions to the most recently announced consolidated forecast: None

* 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 Jun. 30, 2022:

87,649,504 shares

As of Mar. 31, 2022:

87,649,504 shares

As of Mar. 31, 2022:

2,746,514 shares

Three months ended Jun. 30, 2021:

84,796,139 shares

2) Number of treasury shares at the end of the period
As of Jun. 30, 2022:

2,746,610 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2022:

84,902,947 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 3 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 theearnings announcement on Friday, August 5, 2022.

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

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

Additional Information

8

Segment Information

8

Business Combinations

9

1

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, the Japanese economy was recovering during the first quarter of thecurrent fiscal year as restrictions on economic activity were eased because the level of COVID-19 cases declined
somewhat. However, the number of infections is now increasing rapidly due to a new variant. In addition, the cost of
raw materials continues to climb. As a result, the outlook for the economy remains uncertain.
In these circumstances, the AOKI Holdings Group has implemented the following measures and net sales increased
19.2% year-on-year to 39,227 million yen, and operating profit was 1,547 million yen compared with a loss of 1,457
million yen one year earlier. There was an ordinary profit of 1,390 million yen compared with a loss of 1,583 million
yen one year earlier and profit attributable to owners of parent was 1,255 million yen compared with a loss of 1,738
million yen one year earlier.
Operating results by segment are as follows.
Fashion Business
There were activities to strengthen the lineups of spring and summer functional apparel, such as Air Cool Suits,
which are cool, light and easy to wash, and casual apparel such as the Pajama Suit and Pajama Shoes series andT-shirts with Business Suit Tailoring. In the women’s apparel category, there were activities to increase sales of
Set-Up with a Dress-like appearance apparel, 360° Pretty Pants and other fashions that are comfortable for work as
well as leisure activities. Operating hours of the online Chat Styling Service, which started in 2021 and has beenvery popular, have been extended for greater customer convenience. During the first quarter, four AOKI stores andtwo ORIHICA stores were closed to improve the efficiency of store operations. As a result, the number of stores
decreased from 610 at the end of the previous fiscal year to 604 at the end of the first quarter.
Due to these activities, there were strong sales of suits, formal wear and other heavy clothing, and merchandise forwomen also posted strong sales. First quarter performance also benefited from a decline in the impact of thepandemic. As a result, sales increased 20.8% year on year to 20,981 million yen and there was an operating profit of
1,176 million yen compared with a loss of 1,169 million yen one year earlier.
Anniversaire and Bridal BusinessThis business is conducting many activities that utilize the internet and social networking services for efficiently
attracting customers as one way to make sales activities even more effective. In addition, by listening to the wishesof customers, this business upgraded wedding styles and items for chapel weddings, family weddings, photo-only
weddings and other types of weddings.
Despite of these activities, sales declined 12.0% year on year to 2,160 million yen and operating profit fell 58.9% to
39 million yen due to a decline in the number of facilities and other factors.
Entertainment Business
KAIKATSU CLUB café complexes continued its “An Office Anywhere in Japan” project with activities including
the provision at cafés of information and very convenient tools for customers using cafés for their work. Cafés also
upgraded their menu selections, such as by holding a Mixed Soba Fair and giving the Grand Menu a new look.
COTE D’AZUR karaoke locations started offering new ways to use their karaoke facilities. One example is
Sabusuku (subscription), a fixed-price package that allows customers to sing and drink as much as they want. FiT24
is continuing to open more fitness gyms and has started adding indoor golf as one more way to enjoy these gyms.
During the first quarter, KAIKATSU CLUB opened four cafés and FiT24 opened 13 gyms. In addition, due toformat conversions and measures to improve efficiency, three KAIKATSU CLUB cafés and five COTE D’AZUR
karaoke stores were closed. As a result, the number of locations in this business increased from 708 at the end of theprevious fiscal year to 717 at the end of the first quarter.
Segment sales and profit increased because of these measures and benefited from a decline in the negative effects ofthe pandemic. Sales in this segment increased 23.5% to 15,761 million yen and operating profit was 305 million yen
compared with a loss of 553 million yen one year earlier.

2

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

Real Estate Leasing Business
Segment sales increased 11.6% to 1,176 million yen mainly because of an increase in the cost of some subleasing
stores and other facilities. Operating profit decreased 18.7% to 201 million yen.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the first quarter decreased 2,627 million yen from the end of the previous fiscal year to230,380 million yen, due to a decrease in accounts receivable-trade and other factors.
Current assets decreased 4,410 million yen from the end of the previous fiscal year mainly due to a decrease of
5,395 million yen in accounts receivable-trade caused by seasonal and other factors. Non-current assets increased 1,782
million yen from the end of the previous fiscal year as property, plant and equipment increased 826 million yen.
Liabilities
Current liabilities increased 295 million yen from the end of the previous fiscal year. There was a decrease of 3,202
million yen in accounts payable-trade mainly due to seasonal factors and 2,148 million yen in accrued income taxes
due to the payment of income taxes, while there were increases of 5,331 million yen in current portion of long-termborrowings and accrued expenses and others. Non-current liabilities decreased 4,121 million yen due to a decreaseof 3,371 million yen in long-term borrowings resulting from the transfer of long-term borrowings to the current
portion.
Net assets
Net assets increased 1,198 million yen from the end of the previous fiscal year. There was an increase of 831 million
yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
Due to a decline in the impact of the pandemic and other factors, first quarter sales in the Fashion Business exceeded
the pace needed to reach the fiscal year forecast and sales in other businesses sales were generally as planned. Operating
profit in the first quarter was somewhat ahead of the pace needed to reach the fiscal year forecast because of sales
growth, cost reductions and other reasons.
There are no revisions to the fiscal year forecast that was announced on May 12, 2022 because the outlook is unclear
due to uncertainty about the pandemic, the rising cost of raw materials and other reasons.

3

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Millions of yen)First quarter of FY3/23(As of Jun. 30, 2022)

AssetsCurrent assets
Cash and deposits

37,93739,254

Accounts receivable-trade

11,808

6,412

Inventories

18,33017,049

Other

6,481

7,435

Allowance for doubtful accounts

(44)

(49)

74,51370,103

Buildings and structures, net

66,804

67,696

Land

30,76031,152Other, net

15,857

15,399Total property, plant and equipment

113,422

114,248

5,538

6,273

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

Intangible assets
Investments and other assets
Guarantee deposits

6,970

6,918

Leasehold deposit

20,222

19,676

Other

12,381

13,217

Allowance for doubtful accounts

(40)

(56)

Total investments and other assets

39,53439,755

158,495

160,277

233,008

230,380

Total non-current assets
Total assets

4

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

(Millions of yen)First quarter of FY3/23(As of Jun. 30, 2022)

FY3/22(As of Mar. 31, 2022)
Liabilities
Current liabilities
Accounts payable-trade15,272

12,069Current portion of long-term borrowings

10,844

16,176

Income taxes payable

2,508

360

Provision for bonuses

1,814

760

44

20

Other

13,93015,322

Total current liabilities

44,41544,71044,31440,942

Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings
Retirement benefit liability

815

827

Asset retirement obligations

7,680

7,951

Other

8,140

7,107

Total non-current liabilities

60,951

56,830105,366

101,540

Share capital

23,282

23,282

Capital surplus

23,87023,870Total liabilities
Net assets
Shareholders’ equity

Retained earnings

82,821

83,652

Treasury shares(3,489)(3,490)Total shareholders’ equity

126,484

127,315235

465

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

362

343

Total accumulated other comprehensive income

598

808

559

608

Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

5

-

107

127,641

128,840

233,008

230,380

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

(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 FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(Millions of yen)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)

Net sales

32,90539,227

Cost of sales

21,58824,338Gross profit

11,316

14,888Selling, general and administrative expenses

12,774

13,341

Operating profit (loss)(1,457)

1,547Interest income

20

19

Dividend income

13

19

Other

37

53

Total non-operating profit

71

91

Non-operating profit

Non-operating expenses
Interest expenses

92

90

Loss on retirement of non-current assets

15

27

Other

88

130

Total non-operating expenses

196

248

(1,583)

1,390

Subsidies for employment adjustment

337

230

Total extraordinary income

337

230

282

131

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Impairment loss
Loss due to temporary closure590-

Total extraordinary losses

873

131

(2,118)

1,490

Profit (loss) before income taxes
Income taxes – current

359

340

Income taxes – deferred

(739)

(106)

Total income taxes

(379)

234

Profit (loss)(1,738)

1,255

Profit (loss) attributable to owners of parent(1,738)

1,255

6

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/22(Apr. 1, 2021 – Jun. 30, 2021)(Millions of yen)First three months of FY3/23(Apr. 1, 2022 – Jun. 30, 2022)(1,738)1,255

Valuation difference on available-for-sale securities

41

229

Remeasurements of defined benefit plans, net of tax

(2)

(19)

Profit (loss)
Other comprehensive income

Total other comprehensive income
Comprehensive income

39

210

(1,699)1,465(1,699)

1,465

-

-

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, 2023

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First three months of FY3/23 (Apr. 1, 2022 – Jun. 30, 2022)
No reportable information.
Additional Information
Accounting estimates for the impact of COVID-19
There have been no significant changes to the key assumptions used in the accounting estimates for the impact of
COVID-19 described in “Section 5. Accounting, Notes (Significant Accounting Estimates)” in the Annual Securities
Report for the fiscal year ended March 31, 2022.
Segment Information
First three months of FY3/22 (Apr. 1, 2021 – Jun. 30, 2021)
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
Fashion

17,364---

17,364-

17,364-

17,364

Bridal

-

2,453

-

-

2,453

-

2,453

-

2,453

Café complex--

10,812-

10,812-

10,812-

10,812

Karaoke

-

-

1,264

-

1,264

-

1,264

-

1,264

Fitness

-

-

684

-

684

-

684

-

684

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

-

-

-

20

20

-

20

17,364

2,453

12,761-

32,58020

32,600-32,600

-

-

-

304

304

-

304

-

304

17,364

2,453

12,761

304

32,88520

32,905-32,905

-

1

-

748

750

-

750

(750)

-

17,364

2,455

12,761

1,053

33,63520

33,655(750)

32,905External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (1,169)
97
(553)
248
(1,377)10 (1,367)(90)(1,457)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The -90 million yen adjustment to segment profit (loss) includes 897 million yen in elimination for inter-segment
transactions, and -987 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.
3. Segment profit (loss) is adjusted with operating loss 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, 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;
impairment losses of 58 million yen, 222 million yen and 1 million yen were booked respectively in the first threemonths of FY3/22.

8

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

First three months of FY3/23 (Apr. 1, 2022 – Jun. 30, 2022)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Reportable segment
OthersSubtotal (Note 1)

Total

-

20,981

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

Fashion20,981---

Bridal

-

2,157

-

-

2,157

-

2,157

-

2,157

Café complex--

12,331-

12,331-

12,331-

12,331

Karaoke

-

-

2,306

-

2,306

-

2,306

-

2,306

Fitness

-

-

1,121

-

1,121

-

1,121

-

1,121

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

-

-

-

5

5

-

5

20,981

2,157

15,758-38,8985

38,903-38,903

-

-

-

324

324

-

324

-

324

20,981

2,157

15,758324

39,222

5

39,227-39,227

-

2

2

851

856

11

867

(867)

-

20,981

2,160

15,761

1,176

40,07816

40,095(867)

39,227

Sales

External sales
Inter-segment sales
and transfers
Total

20,981-

20,981

Segment profit (loss)
1,176
39
305
201
1,723
(0)
1,723
(176)
1,547
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The -176 million yen adjustment to segment profit (loss) includes 975 million yen in elimination for inter-segment
transactions, and -1,151 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.
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, 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;
impairment losses of 13 million yen, 113 million yen and 4 million yen were booked respectively in the first threemonths of FY3/23.
Business Combinations
Business Combination Through Acquisition
At the meeting of the Board of Directors held on May 23, 2022, AOKI Holdings has decided to establish a capital andbusiness alliance with RUNSYSTEM CO., LTD. and, in conjunction with this alliance, to acquire RUNSYSTEM stockfrom ANNIVERSAIRE HOLDINGS INC., a current shareholder of RUNSYSTEM, and purchase RUNSYSTEM stock
issued by using a third-party allotment, making RUNSYSTEM a subsidiary. On June 8, 2022, RUNSYSTEM became asubsidiary of AOKI Holdings through the acquisition of stock of this company.
1. Summary of business combination(1) Acquired company and its business activities
Acquired company: RUNSYSTEM CO., LTD.
Business activities: Operation of complex cafés, sales of business systems and other external sales activities, and realestate leasing(2) Main Reasons for acquisition
The objective is to maximize synergies through the mutual sharing of the café complex operational know-how of9

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2023

AOKI Holdings and RUNSYSTEM. This is expected to enlarge the complex café market in Japan by attracting newcustomer segments. One example is the increasing use in recent years of cafés as workplaces. Another expected
benefit is the ability to speed up the expansion of the café business by upgrading and refining the business model withactivities such as developing new types of content and operating cafés more efficiently.
(3) Acquisition dateJune 30, 2022 (assumed acquisition date)(4) Legal form of acquisition
Acquisition of shares with cash consideration(5) Company’s name after acquisition
There is no change in the company’s name
(6) Percentage of voting rights acquired
50.71%(7) Basis for choosing the company to acquire
AOKI Holdings acquired the shares in exchange for consideration in cash.
2. Period of the acquired companies’ performance included in the quarterly consolidated statement of income for theperiod under review
Since the assumed acquisition date of the acquired company is June 30, 2022, only the balance sheet isconsolidated in the first quarter of the current fiscal year, and the quarterly consolidated statement of income does
not include the results of the acquired company.
3. Acquisition cost of acquired company and break down by type of consideration
Payment for the acquisition:
Acquisition cost:Cash

887 million yen
887 million yen

4. Goodwill resulting from the acquisition(1) Value of goodwill
777 million yen
The amount of goodwill is tentatively calculated since the allocation of acquisition cost has not been completed asof the end of the first quarter of the current fiscal year. The amortization method and period have not been
determined at this time.
(2) Source of goodwill
The excess earning power expected from the development of new types of content and the efficiency ofoperations, mainly through the mutual sharing of the café complex operational know-how of AOKI Holdings and
RUNSYSTEM.
* 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.

10