News Release Dated April 17, 2020
Company: AOKI Holdings Inc.
Representative: Akihiro Aoki, President
Stock code: 8214, TSE First Section
Contact: Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388

Notice of Extraordinary loss and Revisions to Forecasts
for the Fiscal Year Ended March 31, 2020
AOKI Holdings Inc. expects the extraordinary loss due to impairment losses on fixed assets to be higher
than was originally expected. In addition, AOKI Holdings has revised its consolidated sales and earnings
forecasts for the fiscal year ended March 31, 2020 that were announced on November 7, 2019.
1. Extraordinary loss
AOKI Holdings originally expected to record impairment losses of 2,450 million yen as an extraordinaryloss in the fiscal year that ended on March 31, 2020 but now expects impairment losses to increase toapproximately 4,000 million yen. In the Fashion Business, store closings have increased and the decision
has been made to close more stores in order to improve efficiency. In addition, the Fashion Business has
been negatively affected by warm winter weather and a change in business apparel styles and sales in allbusinesses of AOKI Holdings are lower because of the COVID-19 pandemic and other reasons.
2. Revisions to consolidated forecasts for the fiscal year ended March 31, 2020
(April 1, 2019 – March 31, 2020)
Sales

OperatingprofitOrdinary
profit(Million yen)

(Million yen)

(Million yen)Previous forecast (A)192,500

12,30011,300

5,400

63.03

Revised forecast (B)180,200

6,600

5,450

450

5.26

Change (B - A)

(12,300)(5,700)(5,850)(4,950)(6.4)(46.3)(51.8)(91.7)

Percentage change (%)

Profit attributable Net income
to owners of parent per share(Million yen)

(Yen)

(Reference) Previous fiscal year
195,054
13,491
11,8904,602
53.34(ended March 31, 2019)
Note: Beginning with the current fiscal year, rent income of real estate and the rent cost of real estate are reclassified
from non-operating profit, selling, general and administrative expenses, and non-operating expenses to sales
and cost of sales. Comparisons and analysis using results of operations in the previous fiscal year are based on
figures that have been restated to conform with this change.

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2. Reasons for revisions(1) In the Fashion Business, warm winter weather, a change in business apparel styles and the October
2019 consumption tax hike all had a negative effect on sales. Furthermore, the COVID-19 outbreak
had a significant impact on sales beginning in late February. Existing store sales in March were down
32.9% from one year earlier, including an estimated decline of more than 30% due to COVID-19. In
the ANNIVERSAIRE and Bridal Business, sales in March were down 53.3% from one year earlier
because of a smaller number of locations, adverse market conditions and wedding postponements
starting in late February. COVID-19 is believed to be responsible for a March sales decline of morethan 40% in this business. The Entertainment Business performed well during the fiscal year until
around the second half of February when the number of customers started to fall rapidly. In March,
existing store sales in this business were down 17.2% from one year earlier and almost all of thisdecrease is believed to be attributable to COVID-19.
The consolidated sales forecast was revised to reflect all of these changes.
(2) Despite efforts made to reduce costs in each of our businesses, operating profit and ordinary profit are both
expected to be lower than the previous forecast mainly as a result of a decrease in sales and other factors.

(3) Forecast of profit attributable to owners of parent has been revised as shown above due to a decreasein ordinary profit and because the impairment losses and other extraordinary losses are expected tobe higher than the previous forecast.
Information about the revisions for each segment will be provided in the consolidated financial results tobe announced on Friday, May 8, 2020.
Note: Above forecasts are based on judgments made in accordance with information available tomanagement at the time this release was prepared, and actual results may differ substantially fromthese forecasts for a number of reasons.

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