August 5, 2016

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending March 31, 2017
(Three Months Ended June 30, 2016)[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 filing of Quarterly Report:
August 8, 2016
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 August 5, 2016 at 15:30 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2016 (April 1, 2016 – June 30, 2016)(1) Consolidated results of operations
Sales

Operating profit

Million yen%
Million yen%
Three months ended Jun. 30, 2016
46,3142.5
1,650 (36.6)
45,205
3.0
2,603
22.7
Three months ended Jun. 30, 2015
Note: Comprehensive income (million yen) Three months ended Jun. 30, 2016:
Three months ended Jun. 30, 2015:

Three months ended Jun. 30, 2016
Three months ended Jun. 30, 2015

Net income per share
Yen
9.75
20.32

(Percentages represent year-on-year changes)
Profit attributable toOrdinary income
owners of parent
Million yen%
Million yen%
1,629 (37.7)
870 (52.9)
2,614
22.4
1,848
18.1
590 (down 71.1%)
2,044 (up 17.2%)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Jun. 30, 2016
228,978
140,831
As of Mar. 31, 2016
230,363
142,926
Reference: Shareholders’ equity (million yen)
As of Jun. 30, 2016:
140,744

Equity ratio
%
61.5
62.0
As of Mar. 31, 2016: 142,838

2. Dividends
1Q-endYen

2Q-endYen
20.00

FY3/16
FY3/1721.00
FY3/17 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Dividend per share
3Q-endYen-

Year-end
Yen
20.00

-

22.00

Total
Yen
40.00
43.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2017 (April 1, 2016 – March 31, 2017)
Sales

Operating profit

Ordinary income

Million yen%
Million yen%
Million yen%
First half
82,6801.2
400(89.1)
350(90.3)
Full year
194,600
3.2
15,800(11.2)
15,700(10.9)
Note: Revisions to the most recently announced consolidated forecast: None

(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
100
(95.4)
1.12
8,800
(9.4)
98.92

* 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:

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

None4) Restatements:

None

Note: Please refer to “2. Matters Related to Summary Information (Notes)” on page 4 for further information.

(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Jun. 30, 2016:

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 Jun. 30, 2016:

1,839,592 shares

3) Average number of shares outstanding during the period
Three months ended Jun. 30, 2016:

89,301,220 shares

Three months ended Jun. 30, 2015:

91,000,616 shares

Note 1: Information regarding the implementation of quarterly review procedures
The current quarterly summary report is not subject to the quarterly review procedures based on the Financial Instruments andExchange Act. At the time of disclosure, the review procedures for the quarterly consolidated financial statements have not been
completed.

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 “(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.

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

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. Matters Related to Summary Information (Notes)

4

Changes in Accounting Policies and Accounting-based Estimates, and Restatements

4

3. Quarterly Consolidated Financial Statements

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statement of Income andQuarterly Consolidated Statement of Comprehensive Income

7

Quarterly Consolidated Statement of Income

7

Quarterly Consolidated Statement of Comprehensive Income

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Segment and Other Information

10

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the fiscal year, the Japanese economy remained lackluster as the yen’s strength and otherevents created worries about declining corporate earnings and consumer spending was sluggish. Furthermore, due toinstability overseas and other factors, the outlook is still uncertain.
During the first quarter, the AOKI Group implemented various measures in all business segments as discussed below.
Sales increased 2.5% year-on-year to 46,314 million yen, but operating profit decreased 36.6% to 1,650 million yen.
Ordinary income decreased 37.7% to 1,629 million yen and profit attributable to owners of parent decreased 52.9%
to 870 million yen.
Operating results by segment are as follows.
Fashion Business
AOKI strengthened to offer customers ideas for new products with outstanding functions and significant added value
in the Cool Biz category, including the lines of Truly Washable Suits and High-Spec No-Iron Shirts. There were alsomeasures to further enlarge the selection of women’s apparel. One example is a line of office-casual items forworking women, such as jackets and pants that can be washed by hand at home. The number of customers increased
due to a summer sale to prepare for major store renovations and to other activities. The number of stores was
unchanged at 567 during the first quarter because three stores were opened, including locations at shopping centers,
and three were closed.
ORIHICA’s sales benefited from an expanded lineup for the well-received THE 3rd SUITS brand and the launch ofSuper No-Iron Shirts. To raise awareness of ORIHICA, a Pop Up Shop selling only shirts and blouses was operated
for a limited time only at the Atre Kichijoji shopping center. During the first quarter, the number of stores remained
at 144 because ORIHICA opened its first outlet store and closed one store.
In the first quarter, sales increased 4.4% to 28,236 million yen and operating profit was down 37.9% to 560 million
yen mainly because of a lower gross profit margin and higher selling, general and administrative expenses resulting
from a sale associated with store remodeling.
Anniversaire and Bridal Business
ANNIVERSAIRE INC. operates guesthouse-style wedding and reception facilities. There were numerous sales
promotion and advertising activities that utilized the strength of each location and the strong public perception of the
ANNIVERSAIRE brand. As a new way to attract customers, we increased activities involving the Proposal Plan
service and weddings for couples who have one or more children. We also focused on improving operating
efficiency by taking advantage of the new computer system that became fully operational in April. Despite all these
activities, in part because of adverse market conditions, the number of couples married at ANNIVERSAIRE
wedding facilities decreased.
Sales decreased 14.6% to 6,781 million yen and operating profit decreased 48.1% to 657 million yen.
Karaoke Facility Operations Business
VALIC Co., Ltd., which operates karaoke facilities, increased the selection of limited-time-only menu items,
including new spring and summer dishes. We remodeled 10 locations, making improvements that included adding
more “concept rooms.” We also increased the number of locations that offer a private cinema service called
CINEKARA, which was launched in the previous fiscal year. All these measures are aimed at invigorating existing
karaoke facilities. During the first quarter, the number of locations increased by one to 184 as we opened two
locations near railway stations and closed one location.

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

Although the new locations contributed to sales, intense competition impacted the performance of existing karaoke
facilities. As a result, sales increased 1.7% to 4,205 million yen and there was an operating loss of 146 million yen
compared with a profit of 85 million yen one year earlier.
Café Complex Operations Business
VALIC Co., Ltd., which also operates café complexes, continued to work on improving the performance of existing
locations. Nine facilities were renovated in order to expand the selection of amusement content, add sections
exclusively for women, increased the number of food menus, and make other upgrades. We opened nine facilities
during the first quarter, raising the number from 295 to 304.
Sales increased 16.5% to 7,098 million yen mainly due to the benefits from new facilities and ongoing strong sales
at existing facilities. Operating profit also increased 25.0% to 393 million yen.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the first quarter under review decreased 1,385 million yen from the end of the previous
fiscal year to 228,978 million yen.
Current assets decreased 1,377 million yen from the end of the previous fiscal year. Although cash in hand and inbanks increased 1,971 million yen due to short-term debt among other factors, accounts receivable-trade decreased
3,528 million yen due to seasonal reasons and other factors. Fixed assets decreased 7 million yen from the end of theprevious fiscal year as intangible fixed assets decreased 110 million yen and investments and other assets decreased
277 million yen, while tangible fixed assets increased 380 million yen due to new store openings and other factors.
Liabilities
Current liabilities increased 364 million yen from the end of the previous fiscal year. Although there was a decreaseof 2,289 million yen in accrued income taxes due to the payment of income taxes, there was a 3,000 million yen
increase in short-term debt. Long-term liabilities increased 345 million yen due to an increase of 214 million yen inother long-term liabilities including lease obligations.
Net assets
Net assets decreased 2,094 million yen from the end of the previous fiscal year. There was a decrease of 812 million
yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus, and an increase of
1,001 million yen in treasury stock due to the purchase.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
We have maintained the forecast that was announced on May 12, 2016, because the results of operations in the firstquarter under review were generally in line with the forecast.

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

2. Matters Related to Summary Information (Notes)
Changes in Accounting Policies and Accounting-based Estimates, and Restatements
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 first quarter of the current
fiscal year and partially revised its accounting method for determining the recoverability of deferred tax assets.
The Company is applying this implementation guidance by using the transitional accounting treatments set forth inParagraph 49 (4) of this implementation guidance. Accordingly, the differences between deferred assets and deferredliabilities when applying the applicable provisions of Paragraph 49 (3) a through c and deferred assets and deferredliabilities at the end of the previous fiscal year are added to retained earnings at the beginning of the first quarter ofthe current fiscal year.
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 first quarter of the current fiscal year.

4

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

3. Quarterly Consolidated Financial Statements(1) Quarterly Consolidated Balance Sheet(Millions of yen)First quarter of FY3/17(As of Jun. 30, 2016)

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

27,56029,531

Accounts receivable-trade

9,437

5,909

Inventories

27,83527,749Other current assets

9,111

9,369

Allowance for doubtful accounts

(45)

(38)

73,89972,521

Total current assets
Fixed assets
Tangible fixed assets
Buildings and structures, net

58,90058,923

Land

36,93436,953

Other tangible fixed assets, net

12,01012,350Total tangible fixed assets

107,846

108,226

6,680

6,570

Guarantee deposits

8,307

8,293

Leasehold deposit

20,576

20,679Other investments and other assets

13,093

12,726

Intangible fixed assets
Investments and other assets

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,936

41,659156,464

156,456

230,363

228,978

18,021

16,758-3,000

Current portion of long-term debt

4,050

3,350

Accrued income taxes

2,669

380

Accrued bonuses for employees

1,708

936

98

30

Other current liabilities

11,70014,156

Total current liabilities

38,24838,61336,27536,275

1,845

1,879

1,014

1,014

Total fixed assets
Total assets
Liabilities
Current liabilities
Accounts payable-trade
Short-term debt

Accrued bonuses for directors and statutory auditors

Long-term liabilities
Long-term debt
Accrued retirement benefits for directors and statutory
auditors
Accrued costs for customer point program
Net defined benefit liability

853

878

Asset retirement obligations

5,109

5,180

Other long-term liabilities

4,090

4,305

Total long-term liabilities

49,18749,53387,43688,146

Total liabilities

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AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

(Millions of yen)First quarter of FY3/17(As of Jun. 30, 2016)

FY3/16(As of Mar. 31, 2016)
Net assets
Shareholders’ equity
Common stock

23,282

23,282

Capital surplus

27,833

27,833Retained earnings

92,92992,117

Treasury stock(1,436)(2,438)

Total shareholders’ equity

142,609140,795

Unrealized gain on securities

612

303

Remeasurements of defined benefit plans

(383)

(354)

Total accumulated other comprehensive income

229

(51)

87

87

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

6

142,926

140,831230,363

228,978

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Three-month Period)(Millions of yen)First three months of FY3/16(Apr. 1, 2015 – Jun. 30, 2015)

First three months of FY3/17(Apr. 1, 2016 – Jun. 30, 2016)

Sales

45,20546,314

Cost of sales

24,67426,365Gross profit

20,53019,948Selling, general and administrative expenses

17,926

18,298Operating profit

2,603

1,650

28

27

Non-operating profit
Interest income
Dividend income

91

59

Rental income on real estate

152

152

Other

70

46

Total non-operating profit

342

285

Non-operating expenses
Interest expenses

82

78

Expenses on sub-leased real estate

142

126

Other

107

101

Total non-operating expenses

332

307

2,614

1,629

-

29

-

29

-

68

Ordinary income
Extraordinary gains
Gain on sale of investment securities
Total extraordinary gains
Extraordinary losses
Impairment loss
Loss on disaster-95

Total extraordinary losses

-

164

2,614

1,494

Current income taxes

246

357

Deferred income taxes

518

266

Total income taxes

765

624

Profit1,848

870

Profit attributable to owners of parent

1,848

870

Profit before income taxes

7

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)First three months of FY3/16(Apr. 1, 2015 – Jun. 30, 2015)(Millions of yen)First three months of FY3/17(Apr. 1, 2016 – Jun. 30, 2016)

1,848

870

173

(309)

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

22

29

Total other comprehensive income

195

(280)

2,044

590

2,044

590

-

-

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

8

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First three months of FY3/17 (Apr. 1, 2016 – Jun. 30, 2016)
Purchase of treasury stock
The Company has purchased 854,000 shares of its treasury stock pursuant to the resolution of the Board of Directors
on February 15, 2016. As a result, treasury stock increased 1,001 million yen during the first three months of FY3/17
to 2,438 million yen.

9

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2017

Segment and Other Information
First three months of FY3/16 (Apr. 1, 2015 – Jun. 30, 2015)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)Amounts shown onquarterly
Adjustment
consolidated(Note 1)statement of income(Note 2)

Reportable segment
FashionAnniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

Total

Sales
External sales
Inter-segment sales
and transfers

27,047

7,930

4,132

6,093

45,205-45,205

0

9

0

-

9

(9)

-

Total

27,048

7,939

4,133

6,093

45,214(9)45,205

Segment profit
902
1,265
85
314
2,569
34
2,603
Notes: 1. The 34 million yen adjustment to segment profit includes 1,098 million yen in elimination for inter-segment
transactions, and -1,064 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 toreportable segments.
2. Segment profit is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Not applicable.
First three months of FY3/17 (Apr. 1, 2016 – Jun. 30, 2016)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)Amounts shown onquarterly
Adjustment
consolidated(Note 1)statement of income(Note 2)

Reportable segment
FashionAnniversaireand Bridal

Karaoke
Facility
Operations

CaféComplexOperations

Total

Sales
External sales
Inter-segment sales
and transfers

28,235

6,777

4,203

7,098

46,314-46,314

1

4

1

-

6

(6)

-

Total

28,236

6,781

4,205

7,098

46,321(6)

46,314

Segment profit (loss)
560
657
(146)
393
1,464
185
1,650
Notes: 1. The 185 million yen adjustment to segment profit includes 1,090 million yen in elimination for inter-segment
transactions, and -905 million yen in company-wide costs that cannot be allocated to any specific reportable segments.
Company-wide costs mainly include administration expenses of the Company that cannot be attributed to reportablesegments.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Material impairment losses related to fixed assets
In the Fashion Business, impairment losses were recognized for operating stores set to be rebuilt for which there islittle expectation of recovery. Impairment losses of 68 million yen was booked in the first three months of FY3/17.
* 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.

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