February 8, 2024

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2024
(Nine Months Ended December 31, 2023)[Japanese GAAP]
Listings: Tokyo Stock Exchange
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://www.aoki-hd.co.jp/
Representative:
Haruo Tamura, President
Contact:
Satoshi Eguchi, General Manager of IR/PR OfficeTel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
February 9, 2024
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on February 8, 2024 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2023
(April 1, 2023 – December 31, 2023)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%
Million yen%
Nine months ended Dec. 31, 2023
126,015
5.8
6,896
56.5
Nine months ended Dec. 31, 2022
119,07415.9
4,407
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2023:
Nine months ended Dec. 31, 2022:(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
Million yen%
Million yen
%
6,667
72.6
3,822
99.6
3,862
1,914
3,625 (up 75.7%)
2,063 (-%)

Net income per
Diluted net income
share
per share
Yen
Yen
Nine months ended Dec. 31, 2023
45.42
Nine months ended Dec. 31, 2022
22.55
Note: At the end of the fiscal year ended March 31, 2023, the Company finalized the provisional accounting for the businesscombination. Figures for the nine months ended December 31, 2022 reflects the finalization of this provisional accounting
method.

(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
221,368
132,925
As of Dec. 31, 2023
233,416
132,251
As of Mar. 31, 2023
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2023: 132,669

Equity ratio
%
59.9
56.5
As of Mar. 31, 2023: 131,969

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/237.00
FY3/2413.00
FY3/24 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Year-end
Yen
13.00
27.00

Total
Yen
20.00
40.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 – March 31, 2024)(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Net sales
Operating profit
Ordinary profit
owners of parent
shareMillion yen%
Million yen%
Million yen%
Million yen%
Yen
Full year
185,000
5.0
13,00027.0
12,500
48.3
6,800
20.7
80.83
Note: Revisions to the most recently announced consolidated forecast: None

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury shares) at the end of the period
As of Dec. 31, 2023:

86,649,504 shares

As of Mar. 31, 2023:

87,649,504 shares

As of Mar. 31, 2023:

2,746,866 shares

Nine months ended Dec. 31, 2022:

84,902,825 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2023:

2,626,866 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2023:

84,159,986 shares

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.
Note 2: Cautionary statement with respect to forecasts and other matters
Cautionary statement with respect to forward-looking statements
Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available
to the Company at the time the materials were created. These materials are not promises by the Company regarding future
performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to “(3)Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 3 of the attachments regarding
preconditions or other related matters for the forecast shown above.
Supplementary materials for quarterly financial results
Supplementary materials for quarterly financial results will be available on the Company’s website immediately after the earnings
announcement on Thursday, February 8, 2024.

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

Contents of Attachments
Pages
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

6

Quarterly Consolidated Statement of Income

6

Quarterly Consolidated Statement of Comprehensive Income

7(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Segment Information

8

Business Combinations

9

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, there was a recovery of the Japanese economy at a moderate pacebacked by firm capital expenditures and consumer spending as social and economic activities returned to normal after
the pandemic. The outlook for the Japanese economy remains uncertain. The main reasons are concerns about slowing
economic growth worldwide, the negative effect on consumer spending of inflation caused by the high cost of energy
and raw materials, and Japan’s labor shortage.
Due to the measures of the AOKI Holdings Group explained in the following sections, both sales and earnings
increased in the first nine months of the current fiscal year. Net sales increased 5.8% from one year earlier to 126,015
million yen, operating profit increased 56.5% to 6,896 million yen, ordinary profit increased 72.6% to 6,667 million
yen, and profit attributable to owners of parent increased 99.6% to 3,822 million yen.
Business segment performance was as follows.
Fashion BusinessOne highlight of this business was the launch of Kin-no Suits (“gold suits” in Japanese, meaning “suits of especiallyfine quality”), which incorporate all of the manufacturing expertise accumulated by AOKI since its establishment.
Another new product is Pajama Suits Premium, which expands this consistently popular line of apparel by adding
designs that are suitable for business situations. In the women’s fashion category, AOKI started operating the Jakejo(short for “jacket joshi” – “jacket woman”) Research Institute for the purpose of solving problems that women haveconcerning business apparel. The institute is a source of information about products for working women. In addition,
there are measures for increasing the number of fashions in the MeWORK line of apparel for working women. Four
AOKI stores, including those after conversion from a different format, and one ORIHICA store were opened, andthree AOKI stores and three ORIHICA stores were closed to improve the efficiency of store operations and makeconversion to a different format. As a result, the number of stores decreased from 596 at the end of the previous fiscal
year to 595 at the end of the third quarter.
As a result of these activities and strong existing stores sales, sales in this segment increased 4.1% year on year to60,768 million yen and operating profit increased 62.4% year on year to 1,665 million yen.
Anniversaire and Bridal BusinessThis business continued marketing activities using the internet and social networking services for efficiently attracting
customers. This business also announced the new 2023 TREND COLLECTIONS, a stylish and glamorous wedding
format that reflects global fashion and design trends. Another highlight was the events held at the Omotesando and
Yokohama locations to commemorate Good Husband and Wife Day (November 23), a special day that was establishedby ANNIVERSAIRE in 2020 and has been certified by the Japan Anniversary Association. These events attracted alarge number of couples and their family members.
The number of weddings at existing locations was consistently high although there were negative effects from theclosing of ANNIVERSAIRE Omotesando for remodeling and expenses for renovation. As a result, sales increased
2.6% to 7,341 million yen and there was an operating loss of 5 million yen compared with a profit of 576 million yen
one year earlier.
Entertainment Business
KAIKATSU CLUB café complexes now accept the NIKKEI OFFICE PASS of Nikkei Inc. at all locations. In addition,these cafés have further upgraded services for businesspeople and students and offered a variety of limited time only
menu items through tie-ups with famous restaurants and manufacturers. COTE D’AZUR karaoke stores sold “Kin-no
Potatoes” with matsutake mushroom flavor to give customers taste of high-end cuisine. Another addition to the menu
was a multi-course meal created by the famous restaurant chain Oreno French & Italian. FiT24, which operates 24hour self-service fitness gyms, started a marketing campaign at selected locations featuring reduced rates, including
the U22 Plan with a reduced rate for customers up to the age of 22 and a discount for introducing a friend who becomesa member. Furthermore, the addition of indoor golf facilities to these gyms is continuing. During the first nine months,
KAIKATSU CLUB opened three cafés and FiT24 opened six gyms while seven KAIKATSU CLUB café and seven
COTE D’AZUR karaoke facilities were closed due to measures to improve efficiency. As a result, including the 95
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 53 franchised stores), the number oflocations in this business decreased from 810 at the end of the previous fiscal year to 794 at the end of the third quarter.
Segment sales and earnings increased because of the implementation of these measures and favorable sales at existing
locations. Sales in this segment increased 7.4% to 56,593 million yen and operating profit increased 80.2% to 4,933
million yen.
Real Estate Leasing Business
Segment sales increased 22.3% to 4,376 million yen and operating profit increased 38.1% to 868 million yen mainly
because of the leasing of properties outside the AOKI Group.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the third quarter decreased 12,047 million yen from the end of the previous fiscal year to
221,368 million yen primarily because of seasonal factors.
Current assets decreased 13,501 million yen mainly due to decreases of 12,663 million yen in cash and deposits and5,163 million yen in accounts receivable-trade caused by seasonal and other factors, while there was an increase of
3,719 million yen in inventories resulting from an increase in procurement. Non-current assets increased 1,454 million
yen as property, plant and equipment increased 3,245 million yen due to new store openings, renewals and otheractivities, while there was a decrease of 1,343 million yen in other under investments and other assets, including
deferred tax assets.
Liabilities
Current liabilities decreased 9,152 million yen from the end of the previous fiscal year. There were decreases of 3,343
million yen in accounts payable-trade mainly due to seasonal factors, 1,808 million yen in accrued income taxes dueto the payment of income taxes, and 2,501 million yen in provision for bonuses due to the payment of bonuses. Noncurrent liabilities decreased 3,569 million yen due to a decrease of 3,109 million yen in long-term borrowings resulting
from a 6,000 million yen of new loan and the transfer to the current portion.
Net assets
Net assets increased 674 million yen from the end of the previous fiscal year. Although there was a decrease of 1,197
million yen in capital surplus mainly due to the retirement of treasury shares, treasury shares decreased 443 million
yen as a result of repurchase and retirement and retained earnings increased 1,626 million yen due to a profit
attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
During the first nine months, sales and earnings were somewhat ahead of the pace needed to achieve the fiscal year
forecasts. This was the result of generally firm performances in all businesses except for the Fashion Business which
was partially affected by the negative effects of late summer heat.
In the third quarter, inflation involving prices of goods and raw materials slowed down somewhat. In the fourth quarter,
the performance of the Fashion Business may be significantly influenced by the level of demand in certain market
categories, such as apparel for young people starting college or a new job. However, by taking into consideration thecurrent performance trends and other factors, there are no revisions to the consolidated forecasts for the fiscal year
ending March 31, 2024 that were announced on November 9, 2023.

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/23(As of Mar. 31, 2023)(Millions of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

AssetsCurrent assets
Cash and deposits

38,29525,631

Accounts receivable-trade

13,114

7,951

Inventories

19,46523,184

Other

8,015

8,621

Allowance for doubtful accounts

(54)

(54)

78,83665,335

Buildings and structures, net

63,89865,119Land

31,021

31,021Others, net

14,37816,403

Total property, plant and equipment

109,299

112,544

7,007

6,828

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

Intangible assets
Investments and other assets
Guarantee deposits

6,628

6,435

Leasehold deposit

19,01318,939Other

12,682

11,338

Allowance for doubtful accounts

(53)

(53)

Total investments and other assets

38,272

36,660154,579

156,033

233,416

221,368

Total non-current assets
Total assets

4

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

(Millions of yen)
Third quarter of FY3/24(As of Dec. 31, 2023)

FY3/23(As of Mar. 31, 2023)
Liabilities
Current liabilities
Accounts payable-trade17,963

14,619Current portion of long-term borrowings

10,647

10,047

Income taxes payable

2,012

204

Provision for bonuses

3,349

847

65

100

Other

14,865

13,931

Total current liabilities

48,90439,751

36,20633,097

Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings
Retirement benefit liability

895

871

Asset retirement obligations

7,855

7,909

Other

7,302

6,812

Total non-current liabilities

52,26048,691

101,164

88,442

Share capital

23,282

23,282

Capital surplus

23,795

22,597

Total liabilities
Net assets
Shareholders’ equity

Retained earnings

87,43489,060Treasury shares(3,490)(3,047)

Total shareholders’ equity

131,022

131,893

682

563

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

265

212

Total accumulated other comprehensive income

947

775

281

256

Non-controlling interests
Total net assets
Total liabilities and net assets

5132,251

132,925

233,416

221,368

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Nine-month Period)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)(Millions of yen)First nine months of FY3/24(Apr. 1, 2023 – Dec. 31, 2023)

Net sales

119,074

126,015

Cost of sales

74,05676,218Gross profit

45,017

49,797

Selling, general and administrative expenses

40,61042,900Operating profit

4,407

6,896

Interest income

48

49

Dividend income

36

23

Other

220

152

Total non-operating profit

305

225

Interest expenses

277

218

Loss on retirement of non-current assets

71

40

Other

500

195

Non-operating profit

Non-operating expenses

Total non-operating expenses
Ordinary profit

849

454

3,862

6,667

-

48

Extraordinary income
Gain on sale of investment securities
Settlements received-

500

Subsidies for employment adjustment

255-

Total extraordinary income

255

548

Impairment loss

849

741

Total extraordinary losses

849

741

Extraordinary losses

Profit before income taxes

3,268

6,474

Income taxes – current

714

1,254

Income taxes – deferred

788

1,422

Total income taxes

1,503

2,676

Profit

1,765

3,797

Loss attributable to non-controlling interests

(149)

(24)

Profit attributable to owners of parent

1,914

3,822

6

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)(Millions of yen)First nine months of FY3/24(Apr. 1, 2023 – Dec. 31, 2023)

1,765

3,797

Valuation difference on available-for-sale securities

355

(118)

Remeasurements of defined benefit plans, net of tax

(57)

(53)

ProfitOther comprehensive income

Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners ofparentComprehensive income attributable to non-controllinginterests

7

297

(171)

2,063

3,625

2,212

3,650

(149)

(24)

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First nine months of FY3/24 (Apr. 1, 2023 – Dec. 31, 2023)
Purchase and retirement of treasury shares
AOKI Holdings purchased 1 million treasury shares on May 16, 2023 and retired the same number of shares on May
29, 2023 pursuant to the resolution of the Board of Directors on May 15, 2023.
As a result, treasury shares increased 877 million yen due to the purchase of treasury shares, and capital surplus andtreasury shares decreased 1,165 million yen each due to the retirement of treasury shares.
Segment Information
First nine months of FY3/23 (Apr. 1, 2022 – Dec. 31, 2022)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

OthersSubtotal (Note 1)

Total(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Sales
Fashion58,399---58,399-58,399-58,399Bridal

-

7,150

-

-

7,150

-

7,150

-

7,150

Café complex--

40,774-

40,774-

40,774-

40,774

Karaoke

-

-

7,297

-

7,297

-

7,297

-

7,297

Fitness

-

-

3,769

-

3,769

-

3,769

-

3,769

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

625

-

625

15

641

-

641

58,3997,150

52,467-118,01815

118,033-

118,033

-

-

40

999

1,040

-

1,040

-

1,040

58,3997,150

52,508999

119,058

15

119,074-

119,074

0

6

203

2,577

2,787

44

2,832

(2,832)-58,4007,157

52,711

3,577

121,84659

121,906(2,832)

119,074

External sales
Inter-segment sales
and transfers
Total

Segment profit (loss)
1,025
576
2,737
628
4,968
(1)
4,967
(560)
4,407
Notes: 1. The “others” classification is businesses not included in reportable segments such as advertising-related business.
2. The -560 million yen adjustment to segment profit (loss) includes 3,159 million yen in elimination for inter-segment
transactions, -40 million yen in amortization of goodwill, and -3,679 million yen in company-wide costs that cannot beallocated to any specific reportable segments. Company-wide costs mainly include administration expenses of theCompany that cannot be attributed to reportable segments.
3. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.
4. Segment information for the first nine months of FY3/23 has been restated to reflect the significant revision in theinitial allocation of acquisition costs described in the Business Combinations section.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Fashion Business, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores set to be closed or converted, or expected to remain in the red, for which there is little
expectation of recovery; impairment losses of 51 million yen, 692 million yen and 8 million yen were booked
respectively in the first nine months of FY3/23. In addition, company-wide assets that cannot be allocated to reportablesegments include impairment losses of 96 million yen for property, plant and equipment and other assets that are nolonger used.
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

Significant change in goodwill
Goodwill was booked in the Entertainment Business segment as the Company has acquired the share of RUNSYSTEM
CO., LTD. and included this company in the scope of consolidation. The event caused an increase of goodwill by 407
million yen for the first nine months of FY3/23.
First nine months of FY3/24 (Apr. 1, 2023 – Dec. 31, 2023)
1. Information related to sales and profit/loss for each reportable segment and breakdown of revenue
Reportable segment

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

OthersSubtotal (Note 1)

Total(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

Sales
Fashion60,76560,76560,76560,765
Bridal
7,337
7,337
7,337
7,337
Café complex
44,133
44,133
44,133
44,133
Karaoke
7,792
7,792
7,792
7,792
Fitness
3,934
3,934
3,934
3,934
Other
666
666
46
713
713
Revenue fromcontracts with
60,765
7,337
56,526- 124,630
46 124,676
124,676
customers
Other revenues
60
1,277
1,338
1,338
1,338
External sales
60,765
7,337
56,587
1,277 125,968
46 126,015
126,015Inter-segment sales
2
3
6
3,099
3,111
48
3,159
(3,159)and transfers
Total
60,768
7,341
56,593
4,376 129,079
95 129,174(3,159)126,015
Segment profit (loss)
1,665
(5)
4,933
868
7,462
(4)
7,457
(561)
6,896
Notes: 1. The “others” classification is businesses not included in reportable segments such as advertising-related business.
2. The -561 million yen adjustment to segment profit (loss) includes 3,362 million yen in elimination for inter-segment
transactions, -61 million yen in amortization of goodwill, and -3,862 million yen in company-wide costs that cannot beallocated to any specific reportable segments. Company-wide costs mainly include administration expenses of theCompany that cannot be attributed to reportable segments.
3. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on non-current assets, or goodwill, etc. for each reportable segment
Material impairment losses related to non-current assets
In the Fashion Business and the Entertainment Business, impairment losses were recognized for operating stores set
to be closed or converted for which there is little expectation of recovery; impairment losses of 23 million yen and717 million yen were booked respectively in the first nine months of FY3/24.
Business Combinations
Significant revision of the initial allocation of acquisition costs in comparative information
Regarding a business combination with RUNSYSTEM CO., LTD. conducted on June 30, 2022 (deemed acquisitiondate), provisional accounting methods were used for the allocation of the acquisition cost in the second and third
quarters of FY3/23. The allocation of the acquisition cost was finalized at the end of the previous fiscal year.
With the finalization of this provisional accounting method, the comparative information included in the quarterly
consolidated financial statements for the first nine months of FY3/24 reflects a significant revision in the initial
allocation of acquisition costs. The provisional amount of goodwill of 777 million yen was reduced by the sameamount due to the finalization of the accounting method, and the amount of goodwill of 407 million yen and trade
mark rights of 1,142 million yen were recorded.
As a result, amortization of goodwill decreased by 36 million yen, amortization of trade mark rights increased by 28
million yen, and operating profit, ordinary profit and profit before income taxes increased by 8 million yen each in
the quarterly consolidated statement of income for the first nine months of FY3/23.

9

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2024

* This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

10