February 5, 2021

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2021
(Nine Months Ended December 31, 2020)[Japanese GAAP]
Listings: TSE First Section
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://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:
February 8, 2021
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 5, 2021 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, 2020
(April 1, 2020 – December 31, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toSales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Nine months ended Dec. 31, 2020
94,673 (25.5)(12,141)(12,857)(11,441)
Nine months ended Dec. 31, 2019
(5.5)
937 (79.4)(99)(1,339)127,111
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2020:(10,872) (-%)
Nine months ended Dec. 31, 2019:(1,605) (-%)

Nine months ended Dec. 31, 2020
Nine months ended Dec. 31, 2019

Net income per shareYen(135.00)(15.62)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Dec. 31, 2020
238,838
125,779
As of Mar. 31, 2020
229,843
139,209
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2020: 125,390

Equity ratio
%
52.5
60.5
As of Mar. 31, 2020: 138,981

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/2023.00
FY3/21
10.00
FY3/21 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Year-end
Yen
23.00

Total
Yen
46.00

13.00

23.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2021 (April 1, 2020 – March 31, 2021)
Sales
Million yen

Operating profit%

Million yen%

Ordinary profit
Million yen

Full year
151,300 (16.0)(2,000)(3,000)Note: Revisions to the most recently announced consolidated forecast: None

(Percentages represent year-on-year changes)
Profit attributable to
Net income perowners of parent
share

%

Million yen-(5,350)%Yen-(63.12)

* 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 stock) at the end of the period
As of Dec. 31, 2020:

90,649,504 shares

As of Mar. 31, 2020:

90,649,504 shares

As of Mar. 31, 2020:

5,974,058 shares

Nine months ended Dec. 31, 2019:85,784,575 shares

2) Number of shares of treasury stock at the end of the period
As of Dec. 31, 2020:

5,853,214 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2020:

84,748,030 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 theearnings announcement on Friday, February 5, 2021.

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance

Pages
2

(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

Additional Information

8

Segment Information

9

Subsequent Events

10

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, the number of COVID-19 infections in Japan increased during thesummer and then started climbing rapidly late in November. The resulting impact on economic activities due torequests to limit outings and for other reasons makes the business climate very challenging. The outlook for the
economy remains uncertain because there are still no signs of when this crisis will end.
The AOKI Group took the actions explained in the business segment section to prevent the COVID-19 infection
during the first nine months, but this crisis still had a big negative impact on sales and earnings. Sales decreased
25.5% year-on-year to 94,673 million yen, and operating loss was 12,141 million yen compared with a profit of 937
million yen one year earlier. There was an ordinary loss of 12,857 million yen compared with a loss of 99 million
yen one year earlier. Loss attributable to owners of parent was 11,441 million yen compared with a loss of 1,339
million yen one year earlier.
Operating results by segment are as follows.
Fashion Business
Several new lines of apparel were launched during the current fiscal year. One is highly functional mix-and-match
suits that feature sharp styling and comfort. Another is knit apparel, cardigans and other apparel for use whenworking at home. The new line of mix-and-match “pajama suits” combine the relaxing sensation of pajamas with thestyling of suits. The result is a single outfit for business, remote work, casual occasion, staying home and exercise.
To meet demand for products that prevent infections, we started selling washable antimicrobial masks and antiviralmasks as well as shirts and handkerchiefs with antiviral and antibacterial finishing. For women with active life styles,
we started selling a line of apparel using the SUITS BY JUNKO SHIMADA brand. In addition, we further increased
links between e-commerce and physical stores by using staff snap services to strengthen a digital approach tocustomers. Three ORIHICA stores were opened and five AOKI stores and three ORIHICA stores were closed
following examinations of the profitability of stores. As a result, there were 633 stores at the end of the third quartercompared with 638 at the end of the previous fiscal year.
Although sales in October were higher than one year earlier, when sales were impacted by a consumption tax hike,sales were slow in November and December as people stayed home in response to the increase in COVID-19
infections. As a result, sales in this segment decreased 18.6% to 53,148 million yen and there was an operating lossof 4,878 million yen compared with a 1,940 million yen loss one year earlier.
Anniversaire and Bridal Business
There were many activities to attract customers, including new ideas for weddings that match today’s new life styles
and marketing activities using Instagram and other social networking services. In addition, the Anniversaire Café
Omotesando began operating for a limited time the FENDI CAFFE by ANNIVERSAIRE through a collaboration
with the prestigious Fendi brand of Italy. The new café significantly increased the number of customers.
Despite numerous activities to attract customers as well as cost cutting measures, the number of weddings decreased
due to wedding and reception postponements. As a result, sales fell 70.1% to 5,329 million yen and there was an
operating loss of 2,603 million yen compared with a 747 million yen profit one year earlier.
Entertainment Business
All locations of this business continued to operate while taking many steps to protect customers from COVID-19.
KAIKATSU CLUB has rooms with locks for individual use and is providing a variety of services to promote the useof cafés as a shared working space. KAIKATSU CLUB café complexes also offer customers a broad range ofcontent. Two examples are the classes of LEC, a school for earning professional qualifications, and original videosof Terashima Bunko. Innovative menu items are another initiative, such as the Yaki-Curry (curry casserole) Fair andthe addition of a corn potage flavor version of the popular KAIKATSU French fries using thin-cut potatoes. At all
COTE D’AZUR karaoke locations, customers can watch the DAZN sports channel, which gives people a new way
to enjoy live sporting events in private rooms. During the first nine months, we opened 50 KAIKATSU CLUBs, 18
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

FiT24 locations and nine locations were closed to improve the efficiency of this business. As a result, there were 661
locations in this segment at the end of the third quarter compared with 602 at the end of the previous fiscal year.
Despite these activities, the performance of this business was affected by the need to stay home as much as possible
due to the rapid spread of COVID-19 and by higher expenses because of the addition of new locations. Sales
decreased 18.3% to 35,264 million yen and operating loss was 5,517 million yen compared with a 1,692 million yen
profit one year earlier.
Real Estate Leasing Business
Segment sales increased 9.4% to 2,898 million yen mainly because of an increase in the subleasing of stores andother facilities that were closed in the other three businesses. Operating profit increased 14.4% to 586 million yen.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the third quarter increased 8,994 million yen from the end of the previous fiscal year to
238,838 million yen mainly due to new store openings and other factors.
Current assets decreased 1,689 million yen from the end of the previous fiscal year. There were decreases of 3,361
million yen in accounts receivable-trade due to seasonal factors, 2,688 million yen in inventories due to a decreasein procurement and other factors and 1,858 million yen in other current assets which include other accounts
receivable. There was an increase of 6,224 million yen in cash in hand and in banks due to proceeds fromborrowings. Fixed assets increased 10,683 million yen from the end of the previous fiscal year as there wereincreases of 5,667 million yen in tangible fixed assets due to new store openings and other factors and 5,203 million
yen in other investment and other assets including deferred tax assets.
Liabilities
Current liabilities increased 15,308 million yen from the end of the previous fiscal year. There were a decrease of
4,387 million yen in accounts payable-trade mainly due to seasonal factors and proceeds from short-term borrowingsof 15,000 million yen and an increase of 4,059 million yen in electronically recorded obligations-operating.
Long-term liabilities increased 7,115 million yen. There was an increase of 6,624 million yen in long-termborrowings mainly due to a 11,000 million yen of new loan and scheduled repayment.
Net assets
Net assets decreased 13,430 million yen from the end of the previous fiscal year. There was a decrease of 14,236
million yen in retained earnings due to a loss attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
In the first nine months of the current fiscal year, sales and operating profit were generally consistent with the fiscal
year forecasts. Performance was in line with expectations despite the greater than anticipated negative impact on theEntertainment Business resulting mainly from increasing requests for people to stay home as the COVID-19 began
to spread rapidly in late November. However, there were extraordinary losses mainly caused by valuation losses oninvestment securities as stock prices declined and by other items.
Sales in every business of the AOKI Group have been challenging even at this point because of the declarations of astate of emergency in January in response to the increasing number of COVID-19 infections and for other reasons.
Please refer to subsequent events on page 10 of the attachments for further information. There are concerns about
the effect of the COVID-19 pandemic on sales and earnings if this crisis does not end soon. Nevertheless, there are
no revisions to the fiscal year forecast announced on November 6, 2020 because the fourth quarter (mainly late
February and March) accounts for a large share of fiscal year sales and earnings in the Fashion Business. An
announcement will be made promptly if there is new information concerning this forecast.
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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Millions of yen)
Third quarter of FY3/21(As of Dec. 31, 2020)

AssetsCurrent assets
Cash in hand and in banks

23,84330,068

Accounts receivable-trade

8,455

5,094

Inventories

24,181

21,493

Other current assets

8,851

6,993

Allowance for doubtful accounts

(36)

(41)

65,29763,607

Buildings and structures, net

66,501

71,501

Land

36,13836,138Other, net

14,893

15,560Total tangible fixed assets

117,533

123,200

5,631

5,537

Total current assets
Fixed assets
Tangible fixed assets

Intangible assets
Investments and other assets
Guarantee deposits

7,740

7,465

Leasehold deposit

20,653

20,834

Other investments and other assets

13,02818,231

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,382

46,491

Total fixed assets
Total assets

4

164,546

175,230

229,843

238,838AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

(Millions of yen)
Third quarter of FY3/21(As of Dec. 31, 2020)

FY3/20(As of Mar. 31, 2020)
Liabilities
Current liabilities
Accounts payable-trade
Electronically recorded obligations-operating

14,563

10,176

-

4,059

-

15,000Current portion of long-term borrowings
Accrued income taxes

3,493

5,418

407

310

Accrued bonuses for employees

1,357

708

Short-term borrowings

Accrued bonuses for directors (and other officers)

39

62

Other current liabilities

12,727

12,161

Total current liabilities

32,58747,89640,332

46,956Long-term liabilities
Long-term borrowings

695

535

Retirement benefit liability

1,276

1,333

Asset retirement obligations

7,591

7,565

Other long-term liabilities

8,150

8,771

Total long-term liabilities

58,046

65,162

90,634

113,058

Share capital

23,282

23,282

Capital surplus

27,82327,747Retained earnings

96,29882,061

Treasury stock(7,592)(7,438)

Total shareholders’ equity

139,812125,653

Unrealized gain on securities

(726)

(206)

Remeasurements of defined benefit plans

(105)

(56)

Total accumulated other comprehensive income

(831)

(263)

Accrued costs for customer point program

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

5

228

389

139,209125,779

229,843

238,838AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Nine-month Period)(Millions of yen)First nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)

First nine months of FY3/20(Apr. 1, 2019 – Dec. 31, 2019)
Sales

127,111

94,673

Cost of sales

77,375

67,238Gross profit

49,73527,435

Selling, general and administrative expenses

48,797

39,576937(12,141)

Interest income

5950

Dividend income

56

27

Operating profit (loss)
Non-operating profit

Other

158

178

Total non-operating profit

274

256

Interest expenses

209

267

Loss on disposal of fixed assets

629

405

Other

472

299

1,311

972

(99)

(12,857)

Gain on sale of fixed assets

55-

Gain on sales of investment securities

100

4

4

-

Non-operating expenses

Total non-operating expenses
Ordinary loss
Extraordinary gains

Gain on reversal of stock acquisition rights
Subsidies for employment adjustment

-

637

160

642

Impairment loss

1,359

1,242

Loss on disaster

169-

Loss on valuation of investment securities

72

919

Loss due to temporary closure

-

1,990

Total extraordinary gains
Extraordinary losses

Business structure improvement expenses
Total extraordinary losses
Loss before income taxes

-

202

1,601

4,355

(1,540)(16,569)

Current income taxes

565

448

Deferred income taxes(765)(5,576)

Total income taxes(200)(5,128)Loss(1,339)(11,441)

Loss attributable to owners of parent(1,339)(11,441)

6

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/20(Apr. 1, 2019 – Dec. 31, 2019)(Millions of yen)First nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(1,339)(11,441)

(307)

519

41

48

Loss
Other comprehensive income
Unrealized gain on securities
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income

(266)

568

(1,605)(10,872)(1,605)(10,872)--

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

7

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First nine months of FY3/21 (Apr. 1, 2020 – Dec. 31, 2020)
No reportable information.
Additional Information
Accounting-based Estimates
At present, the COVID-19 pandemic is continuing to have a significant negative impact on the business operationsof the AOKI Group.
The effects of COVID-19 are likely to continue to increase somewhat in all regions of Japan where the businesses of
the AOKI Group operate stores and other facilities. The sales and operating profit of these stores and other facilities
may decline due to restrictions on their operations, lower demand and other reasons until the pandemic winds down
and economic activity in Japan recovers. We expect sales in these businesses in the fiscal year ending in March 2021
to decline from the previous fiscal year due to the effects of the COVID-19. Sales are likely to be down 5%-30% in
the Fashion Business, approximately 40%-60% in the ANNIVERSAIRE and Bridal Business, and about 10%-40%
in the Entertainment Business.
There is no significant change in the AOKI Group’s policy for assumptions, including how much the COVID-19
pandemic will continue to spread, when this crisis will end and other upcoming events. Our best estimate is that arecovery of economic activity in Japan to pre-pandemic levels may not be completed until March 2022 at the latest.
We will use the outlook for the fiscal year ending in March 2021 as the basis for decisions about the need for the
impairment of fixed assets. For some accounting estimates, including estimates for the recognition anddetermination of fixed asset impairment charges and the recoverability of deferred tax assets, amounts posted on thefinancial statements are calculated by using the expected value method.

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

Segment Information
First nine months of FY3/20 (Apr. 1, 2019 – Dec. 31, 2019)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Reportable segment
Anniversaire
Real EstateEntertainment
and Bridal
Leasing

Fashion

Total

Sales
External sales
Inter-segment sales
and transfers
Total

65,263

17,79343,140913

127,111-

127,111

1

8

0

1,735

1,745

(1,745)-65,26517,802

43,1402,648

128,856(1,745)

127,111

Segment profit (loss)(1,940)
747
1,692
512
1,011
(74)
937
Notes: 1. The -74 million yen adjustment to segment profit (loss) includes 3,158 million yen in elimination for inter-segment
transactions, and -3,232 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 (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, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores and subleasing stores set to be closed, or converted, or expected to remain in the red;
impairment losses of 717 million yen, 434 million yen and 206 million yen were booked respectively in the first ninemonths of FY3/20.
First nine months of FY3/21 (Apr. 1, 2020 – Dec. 31, 2020)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
OthersSubtotal (Note 1)(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

53,132

5,329

35,264869

94,59578

94,673-

94,673

15

0

-

2,029

2,045

-

2,045

(2,045)-53,1485,329

35,264

2,898

96,64078

96,719(2,045)

94,673

Total

Sales
External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (4,878)(2,603)(5,517)586 (12,413)
58 (12,354)
213(12,141)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The 213 million yen adjustment to segment profit (loss) includes 3,247 million yen in elimination for inter-segment
transactions, and -3,033 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.
3. Segment profit (loss) is adjusted with operating loss 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, Anniversaire and Bridal, and the Entertainment Business, impairment losses wererecognized for operating stores set to be closed or converted for which there is little expectation of recovery andexpected to remain in the red; impairment losses of 185 million yen, 601 million yen and 455 million yen werebooked respectively in the first nine months of FY3/21.

9

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2021

Subsequent Events
Effects of the January 2021 declarations of a state of emergency due to the COVID-19 pandemic, reduced store
operating hours starting in January and other events
Due to the COVID-19 pandemic and the declarations of a state of emergency on January 7 and 13, 2021, theJapanese government has increased requests for people to stay home as much as possible. In response to these events,
stores of the Fashion Business and karaoke locations of the Entertainment Business have been temporarily closed or
reduced operating hours and sales are decreasing as a result even at this time.
In the Fashion Business, approximately 100 stores in 11 prefectures have reduced operating hours. In the
Anniversaire and Bridal Business, approximately 370 couples have rescheduled weddings and receptions. In
addition, 15 COTE D’AZUR karaoke locations have been temporarily closed and 59 locations have reduced
operating hours in 11 prefectures.
Extension of the declaration of a state of emergency in ten prefectures, which was decided on February 2, 2021, will
negatively affect demand in the Fashion Business for apparel which is normally high in late February and Marchbecause of the large number of ceremonies for starting a new school or job. More weddings and receptions will berescheduled in the Anniversaire and Bridal Business and operating hours will be reduced at karaoke locations. This
crisis is expected to have a significant effect on the AOKI Group’s financial condition and results of operations in
the fiscal year ending in March 2021. However, it is not possible to determine a reliable estimate of the monetaryimpact of this crisis at this time.
At present, we have determined that the effect of this crisis on the accounting estimates at the end of the third
quarter will not be significant.

* 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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