Earnings Presentation
First Quarter, FYE December 2021
May 2021

AOI TYO Holdings Inc.

Contents
1. Summary of Consolidated Financial Results
2. Consolidated Earnings Forecast
3. Appendix - Stock Information, etc1

1.

Summary of Consolidated Financial Results

2

Financial Highlights
 Net sales increased, continuing the earnings recovery that began in Q4 of last year.
 Every profit measure increased, due in part to a decrease in SG&A expense.

(million yen)

Q1 FY2019

Q1 FY2020

Q1 FY2021

YoY Change

15,47013,04914,193+1,144

Operating Income633

116923+806

Ordinary Income

564

5923+918

Profit Attributable toOwners of Parent

263-32403+436

EBITDA

990

400

1,127+726

Net Sales3Segment Performance (1) - Content Production Business
Production of various video content for domestic and overseas advertising, post-production businessand xR content productionNet sales increased due to trending recovery in orders for projects from major advertising companies in line withthe gradual recovery of the domestic advertising market. Postponements and cancellations of projects in thesame quarter of the previous fiscal year due to the impact of COVID-19 were another factor contributing tohigher performance this period.
Segment profit increased due to an increase in sales, decrease in cost of sales stemming from the increase in
the period-end balance of labor costs and expenses recorded in work in process compared to the beginning of
the period, and a decrease in various expenses as a result of cost reduction measures implemented under our
medium-term plan, which we began implementing ahead of schedule in the prior fiscal year.

Net Sales

12,0009,801

10,235

Segment Profit
1,500

8,000

1,000

4,000

5000Q1 FY2020

Q1 FY20210(million yen)

1,367697

Q1 FY2020

Q1 FY20214Segment Performance (2) - Communication Design Business
Providing omnidirectional execution from video, to digital solutions, PR, events, spatial design, andmore in the advertising / marketing solutions domain

 Sales and profits rose through an increase in direct transactions with advertisersand media sales, stemming from the four-company merger in January of this year
resulting in xpd Inc.
Net Sales
4,500

3,248

Segment Profit
3,958200

1,5001000

Q1 FY2020

Q1 FY2021

2413003,0000(million yen)78

Q1 FY2020

Q1 FY2021
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Trend of Net Sales by Quarter
20,00018,425
15,47015,00014,193

16,637

16,16815,166(million yen)

13,04911,31810,00010,083

FY2019FY2020
FY2021

5,000

0Q1

Q2

Q3Q46

Order Intake and Order Backlog by Quarter Q1 orders amounted to ¥16,333 million (8.3% increase year on year).
 Backlog as of the end of Q1 amounted to ¥15,754 million (6.9% decrease year on year).
20,000(million yen)
15,000Order intake FY2019
Order intake FY2020
Order intake FY202110,000
16,91015,912
15,754

14,46915,399

15,11914,0295,0000Order backlog FY2019

14,606
13,306

Order backlog FY2020
Order backlog FY2021

18,19115,35316,333

Q114,373 8,437

Q2

0

15,51711,452

Q3

0

18,56314,545

0Q47

Trends of Operating Income by Quarter
1,500

9659231,000633
500116533337183(million yen)

FY20190FY2020-500-1,000-1,500

FY2021-379-997

Q1Q2

Q3Q48

Net Sales by Customer
19.8%
Q1 FY2019

3,062

32.2%

20.0%

28.0%

4,977

4,328

(million yen)

3,101

* Net sales from Dentsu Inc. (non-consolidated) were 2,682 million yen, and net sales from Hakuhodo Inc. (non-consolidated) were 3,824 million yen.

25.3%

20.0%
Q1 FY2020

2,614

3,296

31.7%

4,135

23.0%

3,002

* Net sales from Dentsu Inc. (non-consolidated) were 2,363 million yen, and net sales from Hakuhodo Inc. (non-consolidated) were 2,460 million yen.

23.0%

19.9%
Q1 FY2021

2,825

3,268

33.6%

4,773

23.4%

3,327

* Net sales from Dentsu Inc. (non-consolidated) were 2,357 million yen, and net sales from Hakuhodo Inc. (non-consolidated)were 2,869 million yen.

Dentsu GroupHakuhodo Group
Direct transactions
Other9

Summary of Consolidated Balance SheetFY2020Q1 FY2021

Current Assets

33,01435,783

Non-current Assets

15,667

15,516

48,68251,300Current Liabilities

14,743

17,957

Short-term loans payable (+3,000); advances received(+407)

Non-current Liabilities

13,707

12,829Long-term loans payable (-890)

Total Liabilities

28,45130,787

Total Net Assets

20,231

20,513Total Liabilities and Net Assets

48,68251,300(million yen)

Total Assets(percentage of total assets)(41.6%)(40.0%)

Major Components
Cash and deposits (+2,697); notes and accounts receivable(+251); electronically recorded monetary claims (-310)

Retained earnings(+117)

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2.

Consolidated Earnings Forecast

11Revised Consolidated Earnings Forecast Based on Q1 results, we have made upward revisions to our forecasts, despite the lack ofclarity and numerous uncertainties as to the timing of the cessation of COVID-19. Theseupward revisions include our judgment of a less-than-expected impact of COVID-19 comparedto our February projections and a reasonable expectation of increased media sales in line withan increase in direct transactions with advertisers.
FY2021
Previous Forecast

FY2021 Latest
Revised Forecast

53,00056,5003,500

Operating Income

900

1,600700

Ordinary Income

800

1,500700

Profit Attributable to Owners of Parent

400700300

EBITDA

1,900

2,600700(million yen)

Net Sales*Published February 19, 2021

Vs. PreviousForecast*Published May 14, 2021
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Dividend Forecast Revision andAbolishment of Shareholder Benefit Program As announced in Notice Regarding Dividend Forecast Revision for the Fiscal YearEnding December 31, 2021 (No Dividend Payment) and Abolishment of Shareholder
Benefit Program published today.

Dividend

End of Q2

End of FYTotal

Previous Forecast

0 yen

12 yen12 yenLatest Revised Forecast*

0 yen

0 yen

0 yen

*The Company will not pay a year-end dividend for the fiscal year ending December 31, 2021, subject to the completion ofthe tender offer

Shareholder
Benefit Program*

The Company intends to abolish its shareholder benefit program effective asof the shareholder benefits having a record date of June 30, 2021.
(The shareholder benefit program has been discontinued with theimplementation of shareholder benefits in September 2020 for shareholders
who hold 500 or more shares of the Company as of June 30, 2020.)*To be abolished as of the fiscal year ending December 31, 2021, regardless of the completion of the tender offer
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3.

Appendix - Stock Information, etc14

AOI TYO Group
Consolidated subsidiaries: 23 total*As of Mar. 31, 2021.

Consolidated employees: 1,687

Content Production Business
Consolidated subsidiaries: 14
Consolidated employees: 1,106

C3Filmtko+9 overseas firms

Communication Design Business
Consolidated subsidiaries: 9Consolidated employees: 432Mediator

K&L

MAZRI

+4 overseas firms, 1 investment partnership

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Status of Stock and Shareholders (as of Dec. 31, 2020)
Number of Shares and Shareholders

Status of Large Shareholders

Total number of shares issued

24,566,447

Total number of shareholders

13,646

Shareholder Composition byType of Shareholder

2.8%

Individuals, etc.

7.7%

Financial institutions

14.8%
1.6%
21.1%

52.0%

Financial instruments
business operator
Other corporations

Shareholder Name

Number ofShares Held

Shareholding
Ratio

1The Master Trust Bank of Japan, Ltd. (Trust Account)

1,357,900

5.68%

2

Cosmo Channel

1,153,740

4.83%

3

IMAGICA GROUP Inc.

1,018,000

4.26%

4

Custody Bank of Japan, Ltd. (Trust Account)

849,500

3.56%

5

Yoshihiro Takebayashi

515,100

2.16%

6

Fields Corporation

479,660

2.01%

7Sumitomo Realty & Development Co., Ltd.

452,600

1.89%

8

Custody Bank of Japan, Ltd. (Trust Account E)

411,200

1.72%

Foreign corporations,etc.

9Hitoshi Hara

400,000

1.67%

10

Employees’ Stockholding367,035

1.54%

Treasury shares* The shareholding ratios are calculated by subtracting treasury shares (677,098).

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Disclaimer
This document includes future forecasts that reflect the plans and outlook of AOITYO Holdings.
The future forecasts and related descriptions are based on information available tothe company at the time of the preparation of this document, and the forecasts areaffected by the economic environment of the company’s businesses, competition, theresults of new services provided, and other factors that involve uncertainties. Pleaseacknowledge, therefore, that the actual business results may deviate significantly
from the forecasts and related information provided in this document.
In addition, the company does not have any obligation to update and publish theinformation concerning future forecasts in this document after its publication.
Please contact the following for any questions:Contact (https://aoityo.com/en/contact.html)
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