May 11, 2017

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 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 Annual General Meeting of Shareholders:June 28, 2017
Scheduled date of filing of Annual Securities Report:
June 29, 2017
Scheduled date of payment of dividend:
June 7, 2017
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on May 11, 2017 at 14:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2017 (April 1, 2016 – March 31, 2017)(1) Consolidated results of operations(Percentages shown for sales and incomes represent year-on-year changes)
Profit attributable toSales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
FY3/17
194,046
2.9
14,447(18.8)
13,895(21.2)
7,355(24.3)
FY3/16
188,594
2.6
17,789(6.5)
17,627
(6.8)
9,711
(4.7)
Note: Comprehensive income (million yen) FY3/17: 7,400 (down 17.0%)
FY3/16: 8,919 (down 18.5%)
Net income per
Diluted net income
Return on equity
share
per share
Yen
Yen%
FY3/1783.38
5.1
FY3/16107.55
6.9
Reference: Equity in income of affiliates (million yen)
FY3/17: -Ordinary profit on
total assets
%
6.0
7.7
FY3/16: -Operating profit to
sales
%
7.4
9.4

(2) Consolidated financial position
Total assets
Million yen
As of Mar. 31, 2017234,681
As of Mar. 31, 2016
230,363
Reference: Shareholders’ equity (million yen)

Net assets
Equity ratio
Net assets per share
Million yen%
Yen
143,906
61.3
1,648.44
142,92662.0
1,593.03
As of Mar. 31, 2017:
143,818
As of Mar. 31, 2016: 142,838(3) Consolidated cash flow position
Cash flows fromoperating activities
Million yen
18,628
12,610FY3/17
FY3/16

Cash flows frominvesting activities
Million yen(10,582)(6,969)Cash flows fromfinancing activities
Million yen(6,998)(7,306)

Cash and cash equivalents
at end of period
Million yen
28,60827,5602. Dividends
Dividend per share
1Q-endYen
FY3/16
FY3/17
FY3/18 (forecasts)-

2Q-end3Q-end

Yen
20.00
21.00
22.00

Yen
-

Year-end

Total

Yen
20.00
22.00
22.00

Yen
40.00
43.00
44.00

Dividend payout Dividend on
ratio
equity(consolidated) (consolidated)
Million yen
%
%
3,592
37.2
2.6
3,768
51.6
2.7
50.5
Total
dividends

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

Million yen
200,550

Operating profit%
3.4

Million yen
14,500Ordinary profit%
Million yen
0.4
14,000%0.8(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
7,600
3.3
87.11

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:

Yes2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None

Note: Please refer to “3. Consolidated Financial Statements and Notes, (5) Notes to Consolidated Financial Statements” on page
13 for further information.

(3) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Mar. 31, 2017:

90,649,504 shares

As of Mar. 31, 2016:

90,649,504 shares

As of Mar. 31, 2016:

984,762 shares

2) Number of shares of treasury stock at the end of the period
As of Mar. 31, 2017:

3,404,290 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2017:88,210,968 sharesFiscal year ended Mar. 31, 2016:

90,297,252 shares

Note 1: The current financial report is not subject to audit 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 “1.
Overview of Results of Operations, etc., (4) Outlook” on page 4 of the attachments regarding preconditions or other related
matters for the forecast shown above.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts on Friday, May 26, 2017.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

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

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows3(4) Outlook

4

2. Basic Approach for the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Income

8

Consolidated Statement of Comprehensive Income

9(3) Consolidated Statement of Changes in Shareholders’ Equity

10(4) Consolidated Statement of Cash Flows

12(5) Notes to Consolidated Financial Statements

13

Going Concern Assumption

13

Changes in Accounting Policies

13

Notes to Consolidated Balance Sheet

13

Notes to Consolidated Statement of Income

14

Notes to Consolidated Statement of Comprehensive Income

15

Notes to Consolidated Statement of Changes in Shareholders’ Equity

16

Notes to Consolidated Statement of Cash Flows17

Segment and Other Information

18

Per Share Information

21

Subsequent Events

21

4. Change in Director

21

1

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

1. Overview of Results of Operations, etc.
(1) Results of Operations
In the fiscal year that ended on March 31, 2017, the Japanese economy continued to recover slowly along withimprovements in jobs and personal income. However, the outlook for the economy is unclear because of uncertainty
about overseas economies and sluggish consumer spending in Japan caused in part by slowing growth in real income.
In this environment, the AOKI Group implemented various measures in each business segment as discussed below.
As a result, business performance in the fiscal year under review is as follows:
Sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

194,046 million yen
14,447 million yen
13,895 million yen
7,355 million yen(up 2.9% year-on-year)(down 18.8% year-on-year)(down 21.2% year-on-year)(down 24.3% year-on-year)

Fashion Business
There were several activities at AOKI to serve a larger number of young customers (“freshers”) who need apparelfor college entrance or graduation ceremonies or for a new job following graduation. TV commercials featuring
Sexy Zone, a group of singers belonging to the same age segment, were used to promote this apparel. For apparel for
women in this “freshers” category, AOKI introduced fashions created in collaboration with the CanCam fashion
magazine. Another major theme of the fiscal year was apparel for students’ job hunting market. Activities to findjobs are becoming longer and more diversified. For this market, AOKI has a line of Kyukyoku no Shukatsu series
that was created jointly with Mynavi Student, a service that provides job hunting (“shukatsu”) information to
students who will soon graduate. Major remodeling projects had been completed at about 120 AOKI stores by
January 2017 in order to improve the store environment for the standpoint of medium to long-term growth. Fourteen
new stores were opened, while eight stores were closed for relocation and other reasons. As a result, there were 573
stores at the end of the fiscal year, compared with 567 one year earlier.
ORIHICA used TV commercials and other activities for THE 3rd SUITS, a line of jacket-and-pants apparel thatreflects the growing diversity of styles of business apparel. In addition, ORIHICA continued to enlarge the lineupsof functional apparel, such as Super No-Iron Shirts and Hashireru Pumps (“pumps that let you run”). Five new stores
were opened while four stores were closed to improve operating efficiency. As a result, there were 145 stores at theend of the fiscal year compared with 144 one year earlier.
Overall, segment sales increased because of higher sales at existing stores, primarily the result of sales at storesreopened after remodeling, the opening of new stores and brisk sales of apparel to “freshers.” However, a decline ingross profit margins due partly to store remodeling sales and store remodeling expenses brought down earnings. As aresult, sales increased 3.7% to 118,264 million yen and operating profit decreased 16.8% to 8,167 million yen.
Anniversaire and Bridal Business
ANNIVERSAIRE INC. operates guesthouse-style wedding and reception facilities. To add more ways to attract
customers, we are strengthening activities involving the Proposal Plan and conducting marketing activities thatutilize the powerful ANNIVERSAIRE brand. We also increased the number of benefits for members of the
ANNIVERSAIRE Members Club, which provides a variety of services to couples after a wedding. In addition, we
replaced our core IT system to improve operating efficiency and reduce costs. Despite all these activities, affected inpart by adverse market conditions, the number of couples married at ANNIVERSAIRE wedding facilities decreased.
Sales decreased 8.4% to 26,860 million yen and operating profit decreased 23.1% to 2,760 million yen.
Karaoke Facility Operations Business
VALIC Co., Ltd., which operates karaoke facilities, installed the most advanced karaoke system to make current
locations even more appealing. In other moves to attract more customers, a variety of party packages wereintroduced to meet a diverse range of customer needs and there were marketing campaigns using tie-ups with2

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

popular artists and characters. Nine karaoke facilities were opened during the fiscal year, while seven facilities wereclosed to improve operating efficiency. As a result, there were 185 karaoke facilities at the end of the fiscal year
compared with 183 one year earlier.
Although the new locations contributed to sales, market conditions and intense competition impacted theperformance of existing karaoke facilities. As a result, sales increased 2.4% to 18,676 million yen and operating
profit decreased 40.4% to 887 million yen.
Café Complex Operations Business
At VALIC Co., Ltd., which also operates café complexes, there were many activities aimed at improving theperformance of existing locations. Cafés increased the selection of limited-time-only menu items, installed PCs withthe latest technology, upgraded the KAIKATSU CLUB app and took other actions to increase the number ofcustomers. Furthermore, 19 facilities were renovated mainly by adding sections exclusively for women andimproving the booth configuration. VALIC actively opened 52 facilities, including its first locations in Tottori,
Okinawa and Fukui, and café complexes near railway stations. One facility was closed due to the termination of acontract during the fiscal year. As a result, there were 346 café complexes at the end of the fiscal year compared with
295 one year earlier.
Sales increased 11.9% to 30,264 million yen due to the newly opened cafés, but operating profit decreased 17.4% to1,893 million yen because of higher expenses for new café openings.
(2) Financial Position
Balance sheet position
Total assets at the end of the fiscal year under review increased 4,318 million yen from the end of the previous fiscal
year to 234,681 million yen.
Current assets increased 1,064 million yen from the end of the previous fiscal year. Although inventories decreased
930 million yen due to increase in sales among other factors, there were increases of 1,047 million yen in cash inhand and in banks mainly due to long-term debt, and 1,070 million yen in accounts receivable-trade due to increasein sales among other factors. Fixed assets increased 3,254 million yen from the end of the previous fiscal year as
tangible fixed assets increased 3,840 million yen due to new store openings, renewals and other factors.
Current liabilities increased 948 million yen from the end of the previous fiscal year. There were increases of 1,137
million yen in accounts payable-trade resulting from an increase in procurement, and 281 million yen in leaseobligations, while there was a decrease of 1,065 million yen in accrued income taxes. Long-term liabilities increased
2,389 million yen. It was mainly due to increases of 850 million yen in long-term debt due to capital investments,
585 million yen in lease obligations and 404 million yen in asset retirement obligations.
Net assets increased 980 million yen from the end of the previous fiscal year. There was an increase of 3,823 million
yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus, and an increase of
2,888 million yen in treasury stock due to the purchase.
(3) Cash Flows
Cash flow position(Millions of yen)
FY3/17

FY3/16
Cash flows from operating activities

12,61018,628Cash flows from investing activities(6,969)(10,582)

Cash flows from financing activities(7,306)(6,998)

Increase (decrease) in cash and cash equivalents(1,665)

1,047

Cash and cash equivalents at beginning of period

29,226

27,560Cash and cash equivalents at end of period

27,56028,608

3

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

Cash and cash equivalents at the end of the fiscal year under review increased 1,047 million yen from the end of theprevious fiscal year to 28,608 million yen mainly due to a decrease in income taxes paid.
Net cash provided by operating activities increased 6,018 million yen to 18,628 million yen on a year-on-year basis.
The principal factors were profit before income taxes of 11,504 million yen, depreciation and amortization of 8,032
million yen, and impairment loss of 2,834 million yen, while there was income taxes paid of 5,685 million yen (thenet of income tax payments and refunds).
Net cash used in investing activities increased 3,612 million yen to 10,582 million yen on a year-on-year basis. Thiswas mainly due to the payments of 10,487 million yen for the acquisition of tangible fixed assets for capital
investment, and leasehold and guarantee deposits of 1,545 million yen, while there was proceeds from sales ofinvestment securities of 2,079 million yen.
Net cash used in financing activities decreased 307 million yen to 6,998 million yen on a year-on-year basis. Thiswas mainly due to scheduled repayment of long-term debt of 4,050 million yen, repayments of lease obligations of
1,904 million yen, payments for purchase of treasury stock of 2,888 million yen, and cash dividends paid of 3,645
million yen, while there were proceeds from long-term debt of 5,000 million yen for capital expenditure.
(4) Outlook
In the fiscal year ending on March 31, 2018, we expect the Japanese economy to continue to recover slowly. But theoutlook remains uncertain primarily because of overseas political and economic events and exchange rate
movements. The AOKI Group will use a variety of actions to respond to diversifying consumer needs as well as tooperate with even greater efficiency. There will also be many initiatives to revitalize existing locations and build amore powerful infrastructure.
In the Fashion Business, AOKI will continue remodeling stores, developing new products and reinforcing its team ofstylists to invigorate existing stores. Another goal is strengthening operations of Size MAX stores that specialize inplus-size apparel. ORIHICA will continue to strengthen its lineup of merchandise and further enhance profitability
by boosting operating efficiencies. We plan to open approximately 14 stores in the Fashion Business during the
fiscal year ending on March 31, 2018.
In the ANNIVERSAIRE and Bridal Business, our goals are to make the ANNIVERSAIRE brand more powerful andoffer more wedding services by using activities that emphasize the strengths of our wedding and reception facilities
and clearly communicate the central concept for ANNIVERSAIRE. Another goal is more progress with improving
operating efficiency.
In the Karaoke Facility Operations Business, we will continue to revitalize existing locations. Actions include
aggressive marketing campaigns using tie-ups with popular characters, introduction of the latest karaoke systems,
and renovation of facilities.
In the Café Complex Operations Business, one goal is taking this business model to a higher level. We are enlarging
the lineup of content, upgrading the food and beverage selection and enlarging café sections exclusively for women.
In addition, we plan to continue opening café complexes near railway stations. In total, we plan to open 27 new
karaoke facilities and café complexes.
By implementing all of these measures, we expect our performance to improve in the coming fiscal year.
Business segment forecasts are based on the following assumptions for changes in existing-store sales.
1Q
Fashion

2Q
0.4

1H
3.3

3Q
1.4

Anniversaire and Bridal (Note)

4Q
1.6

(%)
Full year

2H
0.2

1.8

0.8

1.0

0.3

1.0

Karaoke Facility Operations

(1.1)

(0.4)

(0.7)

(1.3)

2.4

0.5

(0.1)

Café Complex Operations

(1.3)

(0.8)

(1.0)

(0.6)

2.6

1.0

0.0

Note: The percentages for the ANNIVERSAIRE and Bridal business are expected changes in the number of couples married.

4

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

Our business segment forecasts are as follows.
Business segment forecasts for the fiscal year ending March 31, 2018
Anniversaireand Bridal

Karaoke Facility
Operations

Café Complex
Operations

Consolidated

119,900

27,80019,00033,900200,550

101.4

103.5

101.7

112.0

103.4

Fashion
Sales (Millions of yen)
YoY change (%)
Segment profit (Millions of yen)

8,500

2,800

900

1,900

14,500YoY change (%)

104.1

101.4

101.4

100.4

100.4

Note: Segment profit is operating profit. The total segment profits differ from consolidated operating profit because of
consolidation adjustments.

2. Basic Approach for the Selection of Accounting Standards
The AOKI Group’s operations are located in Japan and the Group has little or no need of raising funds in overseas
markets. Moreover, the percentage of shares held by foreign shareholders is relatively small. In view of the above
factors the Company currently uses Japanese accounting standards for its financial statements.
The Company will consider using International Financial Reporting Standards (IFRS) if considered necessary by the
future direction of the Group’s business development, the use of IFRS by other companies in Japan and otherfactors.

5

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet(Millions of yen)
FY3/17(As of Mar. 31, 2017)

FY3/16(As of Mar. 31, 2016)
AssetsCurrent assets
Cash in hand and in banks

27,560Accounts receivable-trade28,608

9,437

Inventories*1

27,835

10,508*1

26,905

Deferred income tax assets

1,953

1,792

Other current assets

7,157

7,181

Allowance for doubtful accounts

(45)

(32)

73,89974,963

124,107130,359

Accumulated depreciation(65,206)(68,790)

Buildings and structures, net

58,90061,56815,171

16,094

Accumulated depreciation(7,467)(8,121)

Machinery, vehicles, tools, furniture and fixtures, net

7,703

7,973

Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures

Machinery, vehicles, tools, furniture and fixtures

Land

*2

Lease assets

36,934*2

36,953

11,754

13,464

Accumulated depreciation(7,531)(8,600)

Lease assets, net

4,223

4,864

Construction in progress

84

327

Total tangible fixed assets

107,846

111,686

6,680

6,301

Intangible fixed assets
Investments and other assets
Investment securities

*3

5,328

*3

3,978

Guarantee deposits

8,307

8,259

Leasehold deposit

20,576

21,066

Deferred income tax assets

5,694

6,564

Other investments and other assets

2,070

1,902

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,936

41,730156,464

159,718

230,363234,681

Total fixed assets
Total assets

6

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

(Millions of yen)
FY3/17(As of Mar. 31, 2017)

FY3/16(As of Mar. 31, 2016)
Liabilities
Current liabilities
Accounts payable-trade

18,021

19,159Current portion of long-term debt

4,050

4,150

Lease obligations

1,570

1,852

Accounts payable-other

5,130

5,259

Accrued income taxes

2,669

1,603

Accrued bonuses for employees

1,708

1,647

98

89

Other current liabilities

4,999

5,434

Total current liabilities

38,24839,197Long-term debt

36,27537,125

Lease obligations
Accrued retirement benefits for directors and statutory
auditors
Accrued costs for customer point program

3,117

3,702

1,845

1,949

1,014

1,069

Accrued bonuses for directors and statutory auditors

Long-term liabilities

Net defined benefit liability

853

976

Asset retirement obligations

5,109

5,513

Other long-term liabilities

973

1,241

Total long-term liabilities

49,18751,57787,436

90,774

Common stock

23,282

23,282

Capital surplus

27,833

27,833

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

92,92996,753

Treasury stock(1,436)(4,325)

Total shareholders’ equity

142,609

143,544

Unrealized gain on securities

612

576

Remeasurements of defined benefit plans

(383)

(302)

Total accumulated other comprehensive income

229

274

87

87

142,926

143,906

230,363234,681

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

7

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

Sales

188,594

194,046

Cost of sales

101,424

107,730

Gross profit

87,17086,315

Selling, general and administrative expenses*1

Operating profit

69,380*1

17,78971,86814,447

Non-operating profit
Interest income

108

97

Dividend income

134

105

Rental income on real estate

607

605

Other

340

261

1,191

1,070

328

315

Total non-operating profit
Non-operating expenses
Interest expenses
Expenses on sub-leased real estate

536

528

Loss on disposal of fixed assets

254

328

Loss on cancellation of lease agreements

21

176

Other

212

273

1,353

1,621

17,627

13,895

68

545

68

545

Total non-operating expenses
Ordinary profit
Extraordinary gains
Gain on sales of investment securities
Total extraordinary gains
Extraordinary losses
Impairment loss

*2

Loss on disaster

1,917
-

Litigation settlement

*2

2,834
102

439

-

2,356

2,937

Profit before income taxes

15,33911,504Current income taxes

5,881

4,746

Deferred income taxes

(253)

(597)

Total income taxes

5,628

4,149

Profit

9,711

7,355

Profit attributable to owners of parent

9,711

7,355

Total extraordinary losses

8

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

Consolidated Statement of Comprehensive Income
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

9,711

7,355

(616)

(36)

ProfitOther comprehensive income
Unrealized gain on securities
Remeasurements of defined benefit plans, net of tax(175)

Total other comprehensive income*1

Comprehensive income

(791)

81
*1

44

8,919

7,400

8,919

7,400

-

-

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

9

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017(3) Consolidated Statement of Changes in Shareholders’ Equity
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
Shareholders’ equity

Balance at the beginning ofcurrent period
Cumulative effects of changes inaccounting policies
Restated balanceCommon stock

Capital surplus

23,28228,757Retained earnings Treasury stock

86,658(45)

Total
shareholders’equity138,654-

23,28228,75786,658(45)

138,654

Changes of items during period
Dividend from surplus(3,440)(3,440)

9,711

9,711

Profit attributable to owners ofparentPurchase of treasury stock
Retirement of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period(923)(2,315)(2,315)

923

-

-

(923)

6,270

(1,391)

3,955

23,282

27,83392,929(1,436)142,609

Accumulated other comprehensive income
Remeasurements
Unrealized gainof defined benefit
on securities
plans
Balance at the beginning ofcurrent period
Cumulative effects of changes inaccounting policies
Restated balance

1,229

(208)

Total accumulated
othercomprehensive
income1,021

StockacquisitionrightsTotal net assets-

139,675
-

1,229

(208)

1,021

-

139,675

Changes of items during period
Dividend from surplus(3,440)

Profit attributable to owners ofparent

9,711

Purchase of treasury stock(2,315)Retirement of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period

(616)

(175)

(791)

87

(704)

(616)

(175)

(791)

87

3,251

612

(383)

229

87

142,926

10

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)(Millions of yen)
Shareholders’ equity

Balance at the beginning ofcurrent period
Cumulative effects of changes inaccounting policies
Restated balanceCommon stock

Capital surplus

23,282

27,833Retained earnings Treasury stock
92,929(1,436)110
23,282

27,83393,039Total
shareholders’equity142,609110(1,436)

142,719

Changes of items during period
Dividend from surplus(3,641)(3,641)

Profit attributable to owners ofparent

7,355

7,355

Purchase of treasury stock
Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period(2,888)(2,888)

-

-

3,713

(2,888)824

23,282

27,83396,753(4,325)

143,544

Accumulated other comprehensive income
Remeasurements
Unrealized gainof defined benefit
on securities
plans
Balance at the beginning ofcurrent period
Cumulative effects of changes inaccounting policies
Restated balance

612

(383)

Total accumulated
othercomprehensive
income229

StockacquisitionrightsTotal net assets

87

142,926
110

612

(383)

229

87

143,036

Changes of items during period
Dividend from surplus(3,641)

Profit attributable to owners ofparent

7,355

Purchase of treasury stock(2,888)Net changes of items other thanshareholders’ equity
Total changes of items during
periodBalance at the end of current
period

(36)

81

44

-

44

(36)

81

44

-

869

576

(302)

274

87

143,906

11

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017(4) Consolidated Statement of Cash Flows
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

Cash flows from operating activities
Profit before income taxes

15,33911,504

Depreciation and amortization

7,677

8,032

Impairment loss
Increase (decrease) in accrued retirement benefits for
employees
Increase (decrease) in accrued retirement benefits for
directors and statutory auditors
Increase (decrease) in accrued costs for customer point
programInterest and dividend income

1,917

2,834

210

245

6

103

55

55

(242)

(202)

Interest expenses

328

315

Loss (gain) on sales of investment securities

(68)

(545)

Decrease (increase) in accounts receivable-trade(445)(1,070)Decrease (increase) in inventories(1,368)930

Increase (decrease) in accounts payable-trade(1,845)

1,137

Increase (decrease) in accrued consumption taxes(1,951)

(284)

Other

684

1,414

Subtotal

20,296

24,469193

159

Interest and dividend income received
Interests paid

(331)

(314)

Income taxes paid

(8,352)(6,922)

Income taxes refund

1,243

1,236

Litigation settlement paid

(439)

-

Net cash provided by operating activities

12,61018,628(5,777)(10,487)

Cash flows from investing activities
Payments for acquisition of tangible fixed assets
Payments for acquisition of intangible fixed assets

(784)

(550)

Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Proceeds from sales of investment securities(1,089)(1,545)

375

490

114

2,079

Net decrease (increase) in trust beneficiary rights

747

(297)

Other

(556)

(249)

(6,969)(10,582)

Net cash used in investing activities
Cash flows from financing activities
Proceeds from long-term debt

5,000

5,000

Repayments of long-term debt

(4,450)(4,050)

Repayments of lease obligations(1,899)(1,904)

Payments for purchase of treasury stock(2,315)(2,888)Dividends paid

(3,439)(3,645)

Proceeds from issuance of subscription rights to shares
Other
Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

87

-

(290)

490

(7,306)(6,998)(0)0(1,665)

1,047

29,226

Cash and cash equivalents at end of period*112

27,56027,560*1

28,608AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017(5) Notes to Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Changes in Accounting Policies
The Company has adopted the “Implementation Guidance on Recoverability of Deferred Tax Assets” (AccountingStandards Board of Japan (ASBJ) Statement No. 26, March 28, 2016) starting with the fiscal year that ended on
March 31, 2017 and partially revised its accounting method for determining the recoverability of deferred tax assets.
The Company has applied this implementation guidance in accordance with the transitional accounting treatments
set forth in Paragraph 49 (4) of this implementation guidance. Accordingly, the differences between deferred tax
assets and deferred tax liabilities determined by the applicable provisions of Paragraph 49 (3), Items 1 through 3 ofthe implementation guidance at the beginning of the fiscal year and deferred tax assets and deferred tax liabilities atthe end of the fiscal year that ended on March 31, 2016 are added to retained earnings at the beginning of the fiscal
year that ended on March 31, 2017.
The result was an increase of 110 million yen each in deferred tax assets (investments and other assets) and retained
earnings at the beginning of the fiscal year that ended on March 31, 2017.
Retained earnings, as shown in the consolidated statement of changes in shareholders’ equity, increased 110 million
yen at the beginning of the fiscal year due to the incorporation of the effect of this accounting policy change on net
assets at the beginning of the fiscal year.
Notes to Consolidated Balance Sheet*1. Breakdown of inventories(Millions of yen)
FY3/16(As of Mar. 31, 2016)

Merchandise

FY3/17(As of Mar. 31, 2017)27,119Raw materials and supplies
Total

26,110715

794

27,835

26,905*2. Collateralized assets(Millions of yen)
FY3/16(As of Mar. 31, 2016)

Land

FY3/17(As of Mar. 31, 2017)284*3. The following items are applicable to non-consolidated subsidiaries and affiliates
FY3/16(As of Mar. 31, 2016)
Investment securities (stocks)414

4. Guarantee liabilities
The Company guarantees following bank loans for a company that is not consolidated.
FY3/16(As of Mar. 31, 2016)
AOKI HOLDINGS N.Y. INC.

369

13

284
(Millions of yen)
FY3/17(As of Mar. 31, 2017)
514(Millions of yen)
FY3/17(As of Mar. 31, 2017)323

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

5. The Company has current account overdraft agreements with major financial institutions in order to raise funds
efficiently. The balance of unused credit lines under these agreements as of the end of the fiscal year is as follows.
(Millions of yen)
FY3/16(As of Mar. 31, 2016)
Current account overdraft

FY3/17(As of Mar. 31, 2017)

25,00025,000--25,00025,000Credit used
Credit available

Notes to Consolidated Statement of Income*1. Major items of selling, general and administrative expenses(Millions of yen)

FY3/16
FY3/17(Apr. 1, 2015 – Mar. 31, 2016) (Apr. 1, 2016 – Mar. 31, 2017)
Advertising expenses

12,202

12,997

Salaries and bonuses

18,31918,766

Provision of accrued bonuses for employees

1,382

1,372

Provision of accrued bonuses for directors and statutory auditors

98

89

Retirement benefit expenses
Provision of accrued retirement benefits for directors andstatutory auditors
Welfare expense

634

746

134

134

3,675

3,768

Rents

15,36015,403

Depreciation and amortization

3,074

3,307

*2. Impairment loss
The Group recognized an impairment loss on the following groups of assets.
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
Use

Item

Location

Operating stores

Buildings and structures, others

Kawasaki City, Kanagawa, etc.

Subleasing stores

Buildings and structures

Suwa City, Nagano

Idle assets

Land

Fujiyoshida City, Yamanashi, etc.

The Group uses individual stores and idle asset items to group its assets.
Book value was impaired to recoverable value, and the resulting impairment loss (1,917 million yen) was recognized
as an extraordinary loss, for idle assets whose recoverable value had fallen below book value, and operating storesand subleasing stores set to be closed, relocated or expected to remain in the red due to changes in conditions at thestore location and other factors.
Breakdown of impairment losses: operating stores 1,836 million yen (including buildings and structures 1,499
million yen and others 337 million yen), subleasing stores 0 million yen (buildings and structures), and idle assets 79
million yen (land).
The recoverable value of this category of assets is measured by net sales value or utility value. The net sales value isbased on the appraisal of a real estate appraiser. The utility value is calculated by the discounted cash flow method.
A discount rate of between 5.6% and 5.9% is used for calculating the utility value.

14

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)
Use

Item

Location

Operating stores

Buildings and structures, others

Ueda City, Nagano, etc.

Subleasing stores

Buildings and structures, others

Nabari City, Mie, etc.

The Group uses individual stores and idle asset items to group its assets.
Book value was impaired to recoverable value, and the resulting impairment loss (2,834 million yen) was recognized
as an extraordinary loss, for operating stores and subleasing stores set to be closed, rebuilt or expected to remain in
the red due to changes in conditions at the store location and other factors.
Breakdown of impairment losses: operating stores 2,833 million yen (including buildings and structures 2,344
million yen and others 488 million yen), and subleasing stores 0 million yen (buildings and structures 0 million yen
and others 0 million yen).
The recoverable value of this category of assets is measured by net sales value or utility value. The net sales value isbased on the appraisal of a real estate appraiser. The utility value is calculated by the discounted cash flow method.
A discount rate of between 4.9% and 5.5% is used for calculating the utility value.
Notes to Consolidated Statement of Comprehensive Income*1. Re-classification adjustments and tax effect with respect to other comprehensive income(Millions of yen)

FY3/16
FY3/17(Apr. 1, 2015 – Mar. 31, 2016) (Apr. 1, 2016 – Mar. 31, 2017)
Unrealized gain on securities
Amount incurred during the year
Re-classification adjustments

(822)
(68)

(46)
(33)

Before tax effect adjustments
Tax effect

(890)
274

(79)
43

Unrealized gain on securities

(616)

(36)

(396)
136

(52)
175

Before tax effect adjustments
Tax effect

(260)
84

123
(41)

Remeasurements of defined benefit plans, net of tax

(175)

81

(791)

44

Remeasurements of defined benefit plans, net of tax
Amount incurred during the year
Re-classification adjustments

Total other comprehensive income

15

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

Notes to Consolidated Statement of Changes in Shareholders’ Equity
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
1. Type of share and number of outstanding shares
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2015
91,249

Increase

Decrease-

600

Number of shares
as of Mar. 31, 2016
90,649Note: Decrease in the number of outstanding shares (Thousand shares)
Retirement of treasury stock pursuant to the Board of Directors’ resolution on May 8, 2015: 600

2. Type and number of shares of treasury stock
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2015
66

Increase

Decrease

1,518

600

Number of shares
as of Mar. 31, 2016
984

Notes: 1. Increase in the number of shares of treasury stock (Thousand shares)
Purchase of treasury stock pursuant to the Board of Directors’ resolution on May 8, 2015: 1,200
Purchase of treasury stock pursuant to the Board of Directors’ resolution on February 15, 2016: 317
Purchase of odd-lot shares: 0
2. Decrease in the number of shares of treasury stock (Thousand shares)
Retirement of treasury stock pursuant to the Board of Directors’ resolution on May 8, 2015: 600

3. Items related to acquisition rights for new sharesCompany

Stock acquisition rights(itemized)

Type of shares Number of shares under stock acquisition rights
Balance as of(Thousand shares)
under stock
Mar. 31, 2016acquisition
As of Mar. 31, (Millions of yen)
As of Apr. 1,
Increase Decreaserights2016
2015

Reporting Stock acquisition rights by
Common905
905
company
way of stock options (2015)
shares
Notes: 1. Number of shares under stock acquisition rights: the number of shares assuming that all stock options have been
exercised.
2. Outline of changes in the number of shares under stock acquisition rights
The increase in the number of shares is due to the issuance of the stock acquisition rights.
3. Stock acquisition rights by way of stock options (2015) have yet to be in the exercise period.

87

4. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 8, 2015
Board of Directors’ meetingon Nov. 6, 2015

CommonsharesCommonsharesTotal amount of dividend(Millions of yen)

Dividend pershare (Yen)Record date

Effective date

1,641

18

Mar. 31, 2015

Jun. 8, 2015

1,799

20

Sep. 30, 2015

Dec. 7, 2015

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Type ofshare

Source offunds

Board of Directors’ meetingon May 12, 2016

CommonsharesRetainedearnings

Total amount of Dividend per
share
dividend(Yen)(Millions of yen)
1,793

16

20

Record date

Effective dateMar. 31, 2016

Jun. 8, 2016

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)
1. Type of share and number of outstanding shares
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2016
90,649

Increase-

Number of shares
as of Mar. 31, 2017
90,649-Number of shares
as of Mar. 31, 2017
3,404

Decrease-

2. Type and number of shares of treasury stock
Type of share
Common shares (Thousand shares)

Number of shares
as of Apr. 1, 2016
984

Increase

Decrease

2,419

Note: Increase in the number of outstanding shares (Thousand shares)
Purchase of treasury stock pursuant to the Board of Directors’ resolution on February 15, 2016: 2,182
Purchase of treasury stock pursuant to the Board of Directors’ resolution on February 9, 2017: 236
Purchase of odd-lot shares: 0

3. Items related to acquisition rights for new sharesCompany

Stock acquisition rights(itemized)

Type of shares Number of shares under stock acquisition rights
Balance as of(Thousand shares)
under stock
Mar. 31, 2017acquisition
As of Mar. 31, (Millions of yen)
As of Apr. 1,
Increase Decreaserights2017
2016

Reporting Stock acquisition rights by
Common905
905
87
company
way of stock options (2015)
sharesNote: Number of shares under stock acquisition rights: the number of shares assuming that all stock options have been exercised.

4. Dividends(1) Dividend payment
Resolution

Type of share

Board of Directors’ meetingon May 12, 2016
Board of Directors’ meetingon November 10, 2016

CommonsharesCommonsharesTotal amount of dividend(Millions of yen)

Dividend pershare (Yen)Record date

Effective date

1,793

20

Mar. 31, 2016

Jun. 8, 2016

1,848

21

Sep. 30, 2016

Dec. 5, 2016

(2) Dividends with a record date in the current fiscal year but an effective date in the following fiscal year
Resolution

Type ofshare

Source offunds

Board of Directors’ meetingon May 11, 2017

CommonsharesRetainedearnings

Total amount of Dividend per
share
dividend(Yen)(Millions of yen)
1,919

22

Record date

Effective dateMar. 31, 2017

Jun. 7, 2017

Notes to Consolidated Statement of Cash Flows*1. Reconciliation of cash and cash equivalents of the statement of cash flows and account balances of balance sheet
FY3/16(Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

Cash in hand and in banks

27,56028,608Cash and cash equivalents

27,56028,608

FY3/16(Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

2,162

2,781

2. Significant non-cash transactions
Assets and obligations applicable to the finance lease transaction

Assets and obligations applicable to the finance leasetransaction

17

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

Segment and Other Information
Segment information
1. Overview of reportable segment
The Group defines reportable segments as businesses for which financial details can be compiled; the Board of
Directors will review this information on a periodic basis in order to assist with decisions about allocating resourcesand evaluating the performance.
AOKI Holdings, as a pure holding company, supports the businesses of the various companies that comprise theGroup, while each business company proposes and executes comprehensive strategies for the respective products
and services they offer in the domestic market.
The products and services of each business company comprise different segments. The four reportable segments are
the Fashion Business, the ANNIVERSAIRE and Bridal Business, the Karaoke Facility Operations Business, and the
Café Complex Operations Business. AOKI and ORIHICA are both included in one business segment, the Fashion
Business, because they fit all the conditions for grouping including similarities in economic characteristics andproduct content.
The Fashion Business plans and sells men’s and women’s wear; the ANNIVERSAIRE and Bridal Business operates
wedding halls; the Karaoke Facility Operations Business operates karaoke facilities; and the Café Complex
Operations Business provides relaxation space with magazines, comics, massage chairs, Internet access, etc.
2. Calculation methods for sales, profits/losses, assets, and other items for each reportable segment
The accounting treatment methods for reportable segments are generally the same as accounting principles andprocedures used for the preparation of the consolidated financial statements.
Profits for reportable segments are generally operating profit figures. Profits on and transfer amounts ofinter-segment transactions within the Group are based on current market prices.
3. Information related to sales, profits/losses, assets, and other items for each reportable segment
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
Reportable segment

Amounts shown on
Adjustment
consolidated(Note 1)
financial statements(Note 2)

Anniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

114,01029,291

18,23827,053

188,594-

188,594

4

29

2

0

37

(37)

-

Total

114,015

29,321

18,24027,054

188,632(37)

188,594

Segment profit

9,818

3,591

1,489

2,291

17,191598

17,789Segment assets

111,656

41,983

14,612

21,975

190,227

40,135

230,363

2,387

1,760

1,312

1,629

7,090

468

7,559

8

-

1

5

15

-

15

2,107

1,114

1,768

4,099

9,089

371

9,461

Fashion

Total

Sales
External sales
Inter-segment sales
and transfers

Other items
Depreciation andamortization
Amortization of goodwill
Increase in tangible
fixed assets andintangible fixed assets

Notes: 1. The above adjustments to segment profits are as follows.
(1) The 598 million yen adjustment to segment profit includes 4,586 million yen in elimination for inter-segment
transactions, and -3,987 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed
to reportable segments.

18

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

(2) The 40,135 million yen adjustment to segment assets includes -32,753 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 72,888 million yen that cannot be allocated to any
specific reportable segments. Company-wide assets consist mainly of the Company’s land, building and structuresof the head office that cannot be attributed to reportable segments.
(3) The 371 million yen adjustment to an increase in tangible and intangible fixed assets mainly includes investment insoftware to be used by the Group.
2. Segment profit is adjusted to be consistent with operating profit on the consolidated statement of income.

FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)(Millions of yen)
Reportable segment

Amounts shown on
Adjustment
consolidated(Note 1)
financial statements(Note 2)

Anniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

118,262

26,847

18,67130,264

194,046-

194,046

1

13

4

-

20

(20)

-

Fashion

Total

Sales
External sales
Inter-segment sales
and transfers
Total

118,264

26,86018,67630,264

194,066(20)

194,046

Segment profit

8,167

2,760

887

1,893

13,709737

14,447

Segment assets

111,083

41,604

14,112

26,565

193,365

41,315

234,681

2,599

1,779

1,225

1,876

7,481

436

7,917

5

-

21

5

32

-

32

5,970

549

1,834

5,849

14,204362

14,567

Other items
Depreciation andamortization
Amortization of goodwill
Increase in tangible
fixed assets andintangible fixed assets

Notes: 1. The above adjustments to segment profits are as follows.
(1) The 737 million yen adjustment to segment profit includes 4,459 million yen in elimination for inter-segment
transactions, and -3,721 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed
to reportable segments.
(2) The 41,315 million yen adjustment to segment assets includes -32,723 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 74,038 million yen that cannot be allocated to any
specific reportable segments. Company-wide assets consist mainly of the Company’s land, building and structuresof the head office that cannot be attributed to reportable segments.
(3) The 362 million yen adjustment to an increase in tangible and intangible fixed assets mainly includes investment inbuilding and structures to be used by the Group.
2. Segment profit is adjusted to be consistent with operating profit on the consolidated statement of income.

Related information
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Sales
No reportable information because there are no external sales outside Japan.
(2) Tangible fixed assets
No reportable information since the Company has no tangible fixed assets other than Japan.

19

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

3. Information by major client
This information is omitted because no external client accounts for more than 10% of sales on the consolidated
statement of income.
FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Sales
No reportable information because there are no external sales outside Japan.
(2) Tangible fixed assets
No reportable information since the Company has no tangible fixed assets other than Japan.
3. Information by major client
This information is omitted because no external client accounts for more than 10% of sales on the consolidated
statement of income.
Information related to impairment losses on fixed assets for each reportable segment(Millions of yen)

FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
Reportable segment
Anniversaire Karaoke Facility Café Complex
and Bridal
Operations
Operations
620
169

FashionImpairment losses

1,116

Eliminationor
corporate
Sub-total
1,906

Reportable segment

Impairment losses

Anniversaire Karaoke Facility Café Complex
and Bridal
Operations
Operations

1,333

1,917

(Millions of yen)

FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)

Fashion

10

Total

289

824

386

Eliminationor
corporate
Sub-total
2,833

0

Total
2,834

Information related to goodwill amortization and the unamortized balance for each reportable segment(Millions of yen)
FY3/16 (Apr. 1, 2015 – Mar. 31, 2016)
Reportable segment
Anniversaireand Bridal

FashionBalance at end of period

8

Karaoke Facility Café Complex
Operations
Operations

-

106

7

Eliminationor
corporate
Sub-total
123

-

Total
123

Note: Goodwill amortization is omitted because the same information is presented in segment information.
(Millions of yen)

FY3/17 (Apr. 1, 2016 – Mar. 31, 2017)
Reportable segment
Anniversaireand Bridal

FashionBalance at end of period0Karaoke Facility Café Complex
Operations
Operations

-

67

1

Eliminationor
corporate
Sub-total
68

Note: Goodwill amortization is omitted because the same information is presented in segment information.

Information related to negative goodwill profits for each reportable segment
No reportable information.

20

-

Total
68

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2017

Per Share Information(Yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

FY3/16(Apr. 1, 2015 – Mar. 31, 2016)
Net assets per share

1,593.03

1,648.44

Net income per share

107.55

83.38

Notes: 1. Diluted net income per share is not presented since the Company has no potential stock with dilutive effects.
2. The following is a reconciliation of net income per share

Item

FY3/16(Apr. 1, 2015 – Mar. 31, 2016)(Millions of yen)
FY3/17(Apr. 1, 2016 – Mar. 31, 2017)

9,711

7,355

-

-

9,711

7,355

90,297

88,210Net income per share
Profit attributable to owners of parent
Net income not available to common stock
shareholders
Profit attributable to owners of parent applicable tocommon stock
Average number of common shares outstanding
during the period (Thousand shares)

Summary of potential stock not included in thecalculation of diluted net income per share since there
was no dilutive effect

Stock acquisition rights issued
pursuant to the Board of
Directors’ resolution on
November 18, 2015
Stock Acquisition Rights No. 5
Number of stock acquisitionrights: 9,050

Stock acquisition rights issued
pursuant to the Board of
Directors’ resolution on
November 18, 2015
Stock Acquisition Rights No. 5
Number of stock acquisitionrights: 9,050

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

Item(Millions of yen)
FY3/17(As of Mar. 31, 2017)

FY3/16(As of Mar. 31, 2016)

Total net assets
Deduction on total net assets[of which stock acquisition rights]

142,926

143,906

87

87

[87]

[87]

Net assets applicable to common shares

142,838

143,818

Number of common stock shares used in calculationof net assets per share (Thousand shares)

89,66487,245Subsequent Events
Not applicable.
4. Change in Director
Promoted Director (effective June 28, 2017)
Executive Vice President: Akira Shimizu (current Managing Director)* 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.

21