Summary of Consolidated Financial Results (Japanese Accounting Standards)
for Fiscal Year Ended December 31, 2018
February 19, 2019
Company name:
AOI TYO Holdings Inc.
Stock Exchange:
Tokyo Stock Exchange
Code:
3975
URL:
http://aoityo.com/en/
Representatives:
Yasuhito Nakae, Representative Director
Inquiries
Satoshi Yuzurihara, Executive Director
Tel: +81-3-3779-8415
Scheduled date of General Shareholders’ Meeting
March 27, 2019
Scheduled date of commencement of dividend payment:
March 28, 2019
Scheduled date of filing of securities report:
March 27, 2019
Supplementary documents for quarterly results:
Yes
Quarterly results briefing:
Yes(for institutional investors and analysts)(Rounded down to the nearest million yen)

1. Consolidated Financial Results for Fiscal Year Ended December 31, 2018 (January 1, 2018 to December 31,
2018)(1) Consolidated operating results(The percentages are year-on-year changes.)
Net sales

Operating income

Million yen%

Million yen%

Million yen

FY201864,792
-8.1
3,433
-25.7
FY201770,473‒4,619‒(Note) Comprehensive income
FY2018: 1,699 million yen (-45.2%)
Net income per
share

Diluted net income
per share

Yen

Yen

Profit attributable toowners of parent

Ordinary income

Million yen

%

3,325
-24.3
1,952
4,394
‒
2,781
FY2017: 3,103 million yen (‒%)

%

-29.8
‒

Return on equity
Ordinary income as(ROE)
percentage of total assets%

Operating incomeon sales%%

FY2018
82.48
81.53
7.8
5.8
5.3
FY2017117.10115.63
11.3
7.4
6.6(Reference) Equity in earnings of affiliates
FY2018: -70 million yen
FY2017: -3 million yen(Note) AOI TYO Holdings was established on January 4, 2017. Accordingly, we do not present comparative results for FY2016.

(2) Consolidated financial position
Total assets

Net assets

Million yen

FY2018FY2017(Reference) Shareholders’ equity

Equity ratio

Net assets per share

Million yen%

55,63425,67959,73725,706FY2018: 25,114 million yen

Yen

45.1
41.3
FY2017: 24,675 million yen

1,066.28
1,035.88(3) Consolidated cash flow
Cash flows from operating Cash flows from investing Cash flows from financing Cash and cash equivalents
activities
activities
activities
at end of period
FY2018FY2017

Million yen

Million yen

Million yen

Million yen

5,379
1,393

-2,060-2,632-5,862
5,445

9,790
12,372

2. Dividends
Dividends per share
End of Q1

End of Q2

End of Q3

Yen

Yen

Yen

FY2017‒FY2018‒FY2019 (forecast)‒(Note) Detail of FY2017 dividends:

8.00
8.00
8.00

Year end
Yen

AnnualYen

Total
dividends

Payout ratio(consolidated)

Ratio ofdividends to
net assets(consolidated)

Million yen

%

%

‒
22.00
30.00
723
25.6
2.9
‒
22.00
30.00
718
36.4
2.9
‒
12.00
20.00
36.4
Ordinary dividend per share: 20.00 yen, commemorative dividend per share: 10.00 yen

3. Consolidated Financial Forecast for FY2019 (January 1, 2019 to December 31, 2019)

Net salesFirst half
Full year(The percentages are year-on-year changes.)
Profit attributable to
Net income per shareowners of parent

Operating income

Ordinary income

Million yen%

Million yen%

Million yen%

Million yen%

Yen

32,00065,000

3.7
0.3

1,100
2,600

-37.0
-24.3

1,000
2,500

-40.5
-24.8

500
1,300

-57.3
-33.4

21.13
54.93

* Notes(1) Important changes in subsidiaries for FY2018 under review (Changes is specified subsidiaries
resulting in change in scope of consolidation)No
New: ― companies
Excluded: ― companies(2) Changes in accounting policies, and changes or restatements of accounting estimates(i) Changes in accounting policies due to revisions to accounting standards etc.

::

Not applicable:Not applicable(iii) Changes in accounting estimates::

Not applicable(iv) Restatements of accounting estimates::

Not applicable(ii)

Changes in accounting policies other than (i)(3) Number of issued shares (common stock)(i)
Number of issued shares (including treasury stock)
FY2018 24,566,447 shares(ii)

24,566,447 shares

FY2017

745,627 shares

FY201723,753,191 shares

Number of treasury stock at end of period
FY2018(iii)

FY2017

1,013,157 shares

Average number of issued shares
FY2018 23,666,970 shares(Note) Treasury stock includes shares that Trust & Custody Services Bank, Ltd. (trust account E) holds as trust
property related to a Board Benefit Trust system (FY2018: 418,900 shares; FY2017: 274,500 shares).
* This summary of financial results is not subject to review by a certified public accountant or certified public
accounting firm.
* Explanation on the proper use of results forecasts and other notes
The forward-looking statements, including results forecasts, in this document are based on information that AOITYO Holdings has obtained at the time of publication and certain assumptions that it believes to be reasonable.
Actual results may differ materially from the forecasts due to a variety of reasons. For more about assumptions
underlying earnings forecasts and cautions regarding the use of earnings forecasts, see 1. Qualitative Information
on Results (4) Future Outlook on P.4 of Attachments.
・AOI TYO Holdings will hold an earnings briefing for institutional investors and analysts on March 4, 2019. Afterthe conclusion of this meeting, the group will publish the materials distributed on the AOI TYO Holdings
corporate website as quickly as possible.

Attachments

1. Qualitative Information on Results

2(1) Discussion of Operating Results

2(2) Discussion of Financial Position

3(3) Discussion of Cash Flows3(4) Future Outlook

4

2. Basic Policy Regarding Selection of Accounting Standards

4

3. Consolidated Financial Statements and Major Notes

5(1) Consolidated Balance Sheets

5(2) Consolidated Statements of Income and Statements of Comprehensive Income

7(3) Consolidated Statements of Changes in Shareholders’ Equity

10(4) Consolidated Statements of Cash Flows

12(5) Notes on the Consolidated Financial Statements

14(Notes Regarding Assumption of Going Concern)

14(Segment Information)

14(Per-share Indicators)

14(Significant Subsequent Events)

15

―1―

1. Qualitative Information on Results(1) Discussion of operating results
Any forward-looking statements below are based on AOI TYO Group judgments as of the end of the current consolidated fiscal year.
The AOI TYO Group consists of AOI TYO Holdings Inc. and consolidated subsidiaries. Our mission is to bridge the gap between
company and consumer through emotion, reaching across the barriers of media as we engage in our business activities. We are an
emotion creation company that designs experiences which move people to emotion-based action through our mainstay business inadvertising video production.
Our growth drivers consist of customer solutions (via business directly with advertisers and online video content marketing) and ouroverseas business, through which we aim for sustainable growth and corporate value improvement.
The Japanese economy continued to recover moderately throughout the fiscal year ended December 2018, driven by improved
corporate earnings and employment. Recovering consumer spending was also a positive factor. At the same time, concerns remain
about trade issues and the potential negative impact of such risks on the global economy.
Operating in this environment, our mainstay Advertising Video Production Business recorded lower results compared to the prior fiscal
year, mainly due to stricter order acceptance (greater emphasis on profitability from early stages of order acceptance and work-stylereform) and a decline in print sales (Note).
The group experienced an increase in expenses associated with the formation of a new company, offices relocation, the installation of
new systems, and lower performance in high-margin print sales. However, we were able to hold profit declines to a lower ratio thanrevenue declines for the year due to several factors. These factors included our ongoing efforts to instill management control ofexternal expenditures related to our Advertising Video Production Business and dividend income related to movies in which the group
invested and produced.
Further, the group recorded extraordinary income related to the sale of real estate and strategic cross-held stocks. We also recorded
extraordinary losses related to a transition from a defined-benefit pension plan to a defined-contribution pension plan and the winding
down of an underperforming subsidiary.
As a result, the AOI TYO Group recorded net sales of ¥64,792 million for the consolidated fiscal year ended December 2018,
representing an 8.1% decrease compared to the prior year. Operating profit amounted to ¥3,433 million (25.7% decrease), while
ordinary profit and profit attributable to owners of parent amounted to ¥3,325 million and ¥1,952 million, representing decreases of
24.3% and 29.8%, respectively. Selling, general and administrative expenses included ¥331 million in amortization of goodwill
associated with M&A activity.
(Note) Historically, television commercial content had been copied to media (“printed”) and delivered to each broadcast station. The
AOI TYO Group recognizesthe sales and profits of this activity in our accounting records. As of October 2017, this content canbe delivered via online data transmission (“printless” format), leading to a decline in related sales and profits over time.
AOI TYO Group reportable segments consist of our Advertising Business and our Video-Related Business. However, the VideoRelated Business accounts for only a small portion of overall results. As this segment does not represent a significant source ofmaterial information, we have omitted disclosure of reportable segments.

―2―(2) Discussion of financial position
Total assets at the end of the consolidated fiscal year decreased by ¥4,102 million compared with the end of the prior fiscal year to¥55,634 million. This decrease was mainly due to decreases in cash and deposits of ¥2,737 million, electronically recorded monetaryclaims of ¥1,934 million, and notes and accounts receivable - trade of ¥1,082 million.
Liabilities decreased by ¥4,076 million compared with the end of the prior fiscal year to ¥29,954 million. Although long-term loans
payable increased ¥1,084 million, short-term loans payable and accounts payable - trade decreased ¥4,666 million and ¥661 million,
respectively.
Net assets amounted to ¥25,679 million, a decrease of ¥26 million compared to the end of the prior consolidated fiscal year. Retained
earnings rose ¥1,952 million due to profit attributable to owners of parent. At the same time, the AOI TYO Group paid ¥721 million in
dividend payments and recorded an increase of ¥478 million in treasury stock.

(3) Discussion of cash flows
Cash and cash equivalents (“Cash”) amounted to ¥9,790 million as of the end of the consolidated fiscal year, representing a decrease of¥2,581 million compared to the prior consolidated fiscal year.
The state of cash flow by segment for the fiscal year under review is as follows.
Cash Flows From Operating Activities
Cash flows from operating activities amounted to ¥5,379 million, compared to cash from operating activities of ¥1,393 million for theprior fiscal year. This result was mainly due to profit before income taxes of ¥3,483 million and a decrease in accounts receivable of¥3,123 million. At the same time, major cash outlays included the payment of ¥1,677 million in income taxes and ¥759 million inaccounts payable - other.
Cash Flows From Investing Activities
Cash used in investing activities amounted to ¥2,060 million, compared to ¥2,632 million for the prior fiscal year. This result was
mainly due to ¥1,354 million in outlays for property, plant, and equipment, ¥676 million in outlays for intangible assets, and ¥681
million in outlays for investment securities. At the same time, we recorded ¥1,328 million in proceeds from the sale of property, plant,
and equipment.
Cash Flows From Financing Activities
Cash used in financing activities amounted to ¥5,862 million compared to cash from financing activities of ¥5,445 million for the priorfiscal year. This result was mainly due to a ¥4,701 million decrease in short-term loans payable, ¥2,708 million in outlays for
repayments of long-term loans payable, and ¥3,643 million in cash proceeds from long-term loans payable.

―3―(4) Future outlook
The AOI TYO Group operates in the advertising and related industries. Advertising spending during FY2019 is expected to remainlevel with the prior year (Note 1). However, online digital and other media continue to diversify and experience innovation, whilesmartphones, tablets, and other devices advance in features and functions. In response, the video advertising market continues todevelop in methods and formats, expected to grow at a steady pace in the future.
Operating in this environment, the AOI TYO Group aims to secure stable revenues over the medium and long term, maintaining a
position as the No.1 video advertising production company working in the TV commercial production market. At the same time, we
intend to grow our presence in the comparatively high production value branding video business within the online video market. We
have identified businesses both directly with advertising sponsors and video content marketing as growth fields for our group. We
intend to make investments in advance to strengthen our presence in these fields and in other peripheral solutions. We will also invest
to bolster and grow our operations in Southeast Asia and other overseas markets. Last, we are committed to continuing our investment
in training and hiring the people who support these operations.
Meanwhile, the TV commercial industry began a staged transition to the “printless” format in October 2017. Accordingly, we expect
commercial print sales to decline further in the future.
In our mainstay Advertising Video Production Business, we have already started practicing stricter research and selection of orders we
accept. This, combined with a management structure emphasizing profitability, have generated significant improvements in our
effective profit margin(Note 2) between FY2017 and FY2018. We believe more room for improvement (including industry-wide
initiatives) awaits in FY2019. Nevertheless, we do not plan to make major increases in sales for the year as we must continue toengage in strict order control polices for work-style reform among our employees.
As a result, we project group operating profit for FY2019 to underperform FY2018, partly due to the impact of outlays for up-front
strategic expenses and the shift to the printless format related to TV commercials.
Based on the preceding, we forecast FY2019 earnings reflecting ¥65,000 million in net sales, ¥2,600 million in operating profit, ¥2,500
million in ordinary profit, and ¥1,300 million in profit attributable to owners of parent.
(Note 1) According to the Review of Advertising Spending Forecasts for Fiscal 2019 (Summary) by Nikkei Advertising ResearchInstitute(Note 2) Effective profit margin = (net sales-external expenditures)/net sales

2. Basic Policy Regarding Selection of Accounting Standards
AOI TYO Group prepares consolidated financial statements according to the Japanese accounting standards in consideration ofcomparability between fiscal years and between companies. We will consider the adoption of the International Financial ReportingStandards (IFRS) as appropriate, taking into account conditions in Japan and abroad.

―4―3. Consolidated Financial Statements and Major Notes(1) Consolidated balance sheets
FY2017(December 31, 2017)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Electronically recorded monetary claims operating
Merchandise and finished goods
Work in process
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Leased assets
Accumulated depreciation
Leased assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Goodwill
Software
Software in progress
Other
Total intangible assets
Investments and other assets
Investment securities
Net defined benefit asset
Deferred tax assets
Lease and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets―5―(Thousands of yen)
FY2018(December 31, 2018)12,573,956
17,813,558

9,836,071
16,731,160

6,208,110
16,1283,629,657
321,354975,911--35,271
41,503,406

4,273,694
7,544
4,256,243
369,742876,667--43,407
36,307,717

5,075,750--2,796,128
2,279,622
1,148,880--893,968
254,9122,500,415--1,840,406
660,008
4,289,822
854,104--658,623
195,481−
7,679,846

5,021,587--2,591,876
2,429,710
1,150,904--894,040
256,863
2,890,481--2,076,067
814,4133,615,121
726,179--615,802
110,376
8,585
7,235,071

4,106,706
171,168
975,504
15,7235,269,103

4,117,710
1,590,986
48,31915,853
5,772,869

2,787,996
143,388
106,863
1,318,377
1,005,320--76,430
5,285,515
18,234,466
59,737,872

3,147,176−
369,910
1,619,387
1,289,247--106,495
6,319,226
19,327,167
55,634,884

FY2017(December 31, 2017)
Liabilities
Current liabilities
Accounts payable - trade
Short-term loans payable
Current portion of long-term loans payable
Accounts payable - other
Income taxes payable
Accrued consumption taxes
Advances received
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term loans payable
Long-term deposits received
Deferred tax liabilities
Provision for directors' retirement benefits
Provision for management board incentive
plan trust
Net defined benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive
incomeShare acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets―6―(Thousands of yen)
FY2018(December 31, 2018)

7,341,915
10,443,335
2,329,624
1,290,271
1,175,623
868,768
758,125
82,298985,299
25,275,262

8,126,930
5,777,154
2,159,836
628,973
1,055,553
379,942
1,136,482
115,779
733,470
20,114,123

3,465,280
3,501,199
391,086
285,3454,549,727
3,501,199
156,639
253,770

105,832
248,570
355,935
403,306
8,756,557
34,031,819

197,115
280,118
509,156
393,106
9,840,835
29,954,958

5,000,000
12,074,353
7,823,773--711,360
24,186,766

5,000,000
12,106,819
9,055,601--1,190,097
24,972,324

444,466
42,391
1,884

167,873--23,287--2,393488,742
140,824889,719
25,706,052
59,737,872

142,193
92,723472,685
25,679,925
55,634,884

(2) Consolidated statements of income and statements of comprehensive income
Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Directors' compensations
Salary and bonus
Retirement benefit expenses
Provision for management board incentive
plan trust
Business consignment expenses
Commission fee
Provision of allowance for doubtful accounts
Depreciation
Amortization of goodwill
Other
Total selling, general and administrative
expenses
Operating profit
Non-operating income
Interest income
Dividend income
Insurance return
Gain on investments in partnership
Other
Total non-operating income
Non-operating expenses
Interest expenses
Commission fee
Share of loss of entities accounted for using
equity method
Provision of allowance for doubtful accounts
Other
Total non-operating expenses
Ordinary profit

FY2017(January 1, 2017December 31, 2017)70,473,898
56,788,855
13,685,042(Thousands of yen)
FY2018(January 1, 2018December 31, 2018)
64,792,263
52,052,181
12,740,082

1,504,422
2,539,623
38,734

1,474,221
2,338,713
45,917

46,624
379,090685,004
45,985
231,940
290,678
3,303,248

91,282564,578
668,267
9,585
252,648
331,137
3,530,649

9,065,352
4,619,689

9,307,001
3,433,080

12,387
24,84063,96929,482
92,264
222,944

9,545
18,26029,069168,567
88,615314,057

89,810231,126

81,358159,072

3,253
1,050
123,307448,548
4,394,085

70,00044,80066,357
421,588
3,325,549―7―

FY 2017(January 1,2017–
December 31, 2017)
Extraordinary income
Gain on sales of non-current assets
Gain on sales of investment securities
Gain on step acquisitions
Other
Total extraordinary income
Extraordinary losses
Impairment loss
Loss on valuation of investment securities
Loss on cancellation of rental contracts
Business structure improvement expenses
Loss on sales of shares of subsidiaries andassociates
Loss on abolishment of retirement benefit plan
Other
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent―8―(Thousands of yen)
FY2018(January 1, 2018December 31, 2018)

20,20027,287
11,732
5,794
65,014

398,163
109,927−
1,368
509,458

23,587
17,817
19,091
23,498217,909−−−28,325−28,737141,058
4,318,041
1,414,894
25,1971,440,091
2,877,949
96,371
2,781,578−
133,561−
351,471
3,483,536
1,759,910--332,849
1,427,061
2,056,475
104,315
1,952,159

Consolidated statements of comprehensive income

ProfitOther comprehensive income
Valuation difference on available-for-salesecurities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, netof taxShare of other comprehensive income ofentities accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to ownersof parent
Comprehensive income attributable to noncontrolling interests

FY2017(January 1, 2017December 31, 2017)
2,877,949(Thousands of yen)
FY2018(January 1, 2018December 31, 2018)
2,056,475

172,524
41,692--276,592--57,594

272--4,278

10,748225,238
3,103,188--18,061--356,526
1,699,949

2,999,837

1,604,472

103,351

95,476―9―

(3) Consolidated statements of changes in shareholders’ equity
FY 2017 (January 1,2017–December 31, 2017)

Shareholders' equity

Balance at beginning of current period
Changes of items during period
Increase by share transfers
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Change in ownership interest of parent due
to transactions with non-controllinginterests
Increase in retained earnings due to
exclusion of subsidiaries fromconsolidation
Change of scope of consolidation
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Capitalstock

CapitalsurplusRetainedearnings

Treasuryshares3,323,900

3,972,436

5,497,681--637,954

1,676,100

8,178,692

45,49145,491
42,391--319,154
390,458-42,921-33,853

1,676,100
5,000,000

8,101,916
12,074,353

272
272
1,884

218,289
218,289
488,742―10―9,710,081--470,863
2,781,578--319,154
347,536-33,853

15,377

Accumulated other comprehensive income
Valuation
Foreign
Total accumulated
Remeasurements
difference on
currency
otherof defined benefit
available-fortranslation
comprehensive
plans
sale securities
adjustment
income271,941-3,100
1,612
270,452

172,524
172,524
444,466--144,710--470,863
2,781,578

Total
shareholders' equity
12,156,063

15,377−2,326,092
7,823,773-73,405-711,360

12,030,703
24,186,766

Shareacquisitionrights

Noncontrollinginterests

Total net
assets62,782

610,130 13,099,428

78,042
78,042140,824

9,710,081-470,863
2,781,578-319,154
347,536-33,853
15,377−
279,589
575,920
279,589 12,606,624
889,719 25,706,052

FY2018 (January 1, 2018-December 31, 2018)

Shareholders' equity

Balance at beginning of current period
Changes of items during period
Increase by share transfers
Dividends of surplus
Profit attributable to owners of parent
Purchase of treasury shares
Disposal of treasury shares
Change in ownership interest ofparent due to transactions with noncontrolling interests
Increase in retained earnings due to
exclusion of subsidiaries fromconsolidation
Change of scope of consolidation
Net changes of items other thanshareholders' equity
Total changes of items during period
Balance at end of current period

Valuationdifference on
available-forsale securities
444,466-276,592-276,592
167,873

Capitalstock

CapitalsurplusRetainedearnings

5,000,000

12,074,353

7,823,773-721,445
1,952,159-772,166
293,42975,954-43,487

−
1,113

1,113

−
5,000,000

32,466
12,106,819-4,278-4,278-2,393

1,231,827
9,055,601-346,549-346,549
142,193―11―−-721,445
1,952,159-772,166
369,383-43,487

Accumulated other comprehensive income
Foreign
Remeasurements
Total accumulated
currencyof defined benefit other comprehensive
translation
plans
incomeadjustment
42,391
1,884
488,742-65,678-65,678-23,287

Total
shareholders'equity-711,360
24,186,766

TreasurysharesShare
acquisitionrights-478,736-1,190,097

Noncontrollinginterests

785,557
24,972,324

Total net
assets140,824889,719 25,706,052-48,101-48,101
92,723−-721,445
1,952,159-772,166
369,383-43,487−
1,113-417,034-811,684-417,034-26,126
472,685 25,679,925

(4) Consolidated statements of cash flows
FY 2017(January 1,2017–
December 31, 2017)

Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment loss
Amortization of goodwill
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for directors' retirement benefits
Increase (decrease) in provision for management board incentive
plan trust
Increase (decrease) in net defined benefit liability
Interest and dividend income
Interest expenses
Share of loss (profit) of entities accounted for using equity
methodCommission fee
Loss (gain) on sales of non-current assets
Loss (gain) on sales of investment securities
Loss on abolishment of retirement benefit plan
Decrease (increase) in notes and accounts receivable - trade
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable - trade
Increase (decrease) in accounts payable - other
Increase (decrease) in accrued consumption taxes
Increase (decrease) in advances received
Decrease (increase) in other assets
Increase (decrease) in other liabilities
Other, net
SubtotalInterest and dividend income received
Proceeds from insurance income
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities―12―(Unit: thousand yen)
FY 2018(January 1, 2018December 31, 2018)

4,318,041
845,461
23,587
290,678
45,103
19,076-62,718

3,483,536
1,012,989
217,909331,137
40,12933,477-31,575

46,624-39,187-37,228
89,81091,282
27,794-27,806
81,3583,253
231,126-15,373-23,905−-6,552,905
1,112,578
308,054
163,754706,258-100,830
255,439
371,315
219,2022,217,215
37,22823,148-94,147-790,359
1,393,085

70,000159,072-398,163-109,927
133,561
3,271,185-652,238
451,020-759,178-487,672
117,489
236,814-126,248-74,452
7,091,497
27,806
11,310-74,325-1,677,000
5,379,288

FY 2017(January 1,2017–
December 31, 2017)

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Payments for lease and guarantee deposits
Proceeds from collection of lease and guarantee deposits
Proceeds from maturity of insurance funds
Payments for investments in capital
Purchase of shares of subsidiaries resulting in change in scope of
consolidation
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Payments for sales of shares of subsidiaries resulting in change inscope of consolidation
Proceeds from sales of shares of subsidiaries resulting in change
in scope of consolidation
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of long-term loans payable
Purchase of treasury shares
Cash dividends paid
Proceeds from exercise of share options
Payments from changes in ownership interests in subsidiaries that
do not result in change in scope of consolidation
Commission fee paid
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents from newly consolidated
subsidiary
Increase in cash and cash equivalents resulting from share transfer
Cash and cash equivalents at end of period―13―(Thousands of yen)
FY 2018(January 1, 2018December 31, 2018)-802,021
165,500-826,008-1,121,206-325,973
231,790295,810-138,715-1,354,504
1,328,933-676,389-681,113-393,633
92,53236,477-220,587−-382,018

12,327−-216,007−

11,802
79,766-2,632,934

15,420174,146-2,060,737

6,366,059
3,720,000-3,532,149-319,154-467,259
180,280-4,701,764
3,643,425-2,708,672-540,253-716,552
90,695-120,958-236,921-144,804
5,445,093
36,0184,241,262
3,155,905-634,537-159,072-135,859-5,862,590-75,142-2,619,182
12,372,307−
4,975,139
12,372,307

37,474−9,790,600

(5) Notes on the consolidated financial statements(Notes regarding assumption of going concern)
Not applicable(Segment information)
The reporting segments of AOI TYO Group are its Advertising Business and Video-related Business. However, the Video-related
Business accounted for a very small percentage of the entire segment and was immaterial in terms of disclosure information.
Segment information has therefore been omitted.
(Per-share indicators)
FY 2017(January 1,2017–December 31, 2017)

FY 2018(January 1, 2018-December 31, 2018)

Net assets per share

1,035.88 yen Net assets per share

1,066.28 yen

Net income per share

117.10yen Net income per share

82.48 yen

Diluted net income per share

115.63yen Diluted net income per share

81.53 yen

(Note) Basis for calculating net income per share and fully diluted net income per share is as shown below.
FY 2017(January 1,2017–
December 31, 2017)

FY 2018(January 1,2017–
December 31, 2018)

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

2,781,578

1,952,159−−

2,781,578

1,952,159

23,753

23,666

Net income adjustments attributable to owners of parent(thousand yen)−−

Number of common shares increased (thousand shares)

302

277

(Subscription rights to shares (thousand shares) )

302

277

Amount not attributable to common shareholders(thousand yen)
Net income attributable to owners of parent pertaining tocommon shares (thousand yen)
Average number of common shares issued(thousand shares)
Diluted net income per share・4th subscription rights to shares(Commonstock:
306,000
shares)Summary of fully diluted shares not included in the・7th subscription rights to sharescalculation of fully diluted net income per share due to(Commonstock:
135,000―
anti-dilutive effectshares)・8th subscription rights to shares(Commonstock:
179,694
shares)*To calculate net income per share, those AOI TYO Holdings shares remaining in trust that are posted as treasury shares areincluded in treasury shares deducted in the calculation of average number of shares during the term. To calculate net assets per
share, these same shares are also included in the number of treasury shares deducted from the year-end number of shares issued. A
total of 274,500 shares and 363,361 shares of treasury stock noted above were deducted for the purpose of calculating net income
per share for the prior consolidated fiscal year and current consolidated fiscal year, respectively. At total of 274,500 shares and418.900 shares of treasury stock noted above were deducted for the purpose of calculating net assets per share for the priorconsolidated fiscal year and current consolidated fiscal year, respectively.

―14―

(Significant subsequent events)
Not applicable.

―15―