February 9, 2023

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2023
(Nine Months Ended December 31, 2022)[Japanese GAAP]
Listings: Tokyo Stock Exchange
AOKI Holdings Inc.
8214
URL: https://www.aoki-hd.co.jp/
Haruo Tamura, President
Tomoki Yanagi, Managing Executive Officer,
Tel: +81-45-941-1388
General Manager of IR/PR Office
Scheduled date of filing of Quarterly Report:
February 10, 2023
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial
Yes
results:
Holding of quarterly financial results meeting:
None
Note: The original disclosure in Japanese was released on February 9, 2023 at 15:30 (GMT +9).

Company name:
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Nine Months Ended December 31, 2022
(April 1, 2022 – December 31, 2022)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%
Million yen%
Nine months ended Dec. 31, 2022
119,07415.9
4,398
Nine months ended Dec. 31, 2021
102,713
8.5(1,734)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2022:
Nine months ended Dec. 31, 2021:

Nine months ended Dec. 31, 2022
Nine months ended Dec. 31, 2021

Net income per
share
Yen
21.81
(30.21)(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
Million yen%
Million yen
%
3,854
1,851
(2,511)(2,563)
2,045 (-%)
(2,775) (-%)

Diluted net income
per shareYen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
224,424
128,761
As of Dec. 31, 2022
233,008
127,641
As of Mar. 31, 2022
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2022: 128,070

Equity ratio
%
57.1
54.5
As of Mar. 31, 2022: 127,082

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/22
5.00
FY3/237.00
FY3/23 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Year-end
Yen

Total
Yen
5.00

10.00

10.00

17.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)(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
172,700
11.5
8,800
61.7
8,150
86.9
4,100
59.9
48.29
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, 2022:

87,649,504 shares

As of Mar. 31, 2022:

87,649,504 shares

As of Mar. 31, 2022:

2,746,514 shares

Nine months ended Dec. 31, 2021:

84,860,387 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2022:

2,746,806 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2022:

84,902,825 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 9, 2023.

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

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

Additional Information

8

Segment Information

8

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AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, despite re-expansion of the new COVID-19 variant during thesummer and starting in October, the Japanese economy continued to slowly recover as restrictions due to the pandemic
were lifted in stages. However, the outlook for the economy remains uncertain because of rising prices of energy andraw materials caused by growing tension overseas, supply chain instability, inflation and other events.
Due to the measures of the AOKI Holdings Group explained in the following sections, net sales increased 15.9% fromone year earlier to 119,074 million yen, and operating profit was 4,398 million yen compared with a loss of 1,734
million yen one year earlier. There was an ordinary profit of 3,854 million yen compared with a loss of 2,511 million
yen one year earlier and profit attributable to owners of parent was1,851 million yen compared with a loss of 2,563
million yen one year earlier.
Operating results by segment are as follows.
Fashion Business
The lineup of suits and other business and formal apparel was expanded due to the recovery in demand for this categoryof apparel and the lineup of apparel for cold weather, including ultra-lightweight coats, was enlarged. Pajama Suits,
which have been very successful since the November 2020 launch, have become accepted as a type of business appareltoo due to strong sales of these suits with collars. In the MeWORK Project for supporting working women, sales
activities were centered on Relax-Jackets, which are easy to wash, resist wrinkling and are stretchable. At ORIHICA,
all stores are now operating as “easy web shops” by using linkage between online shopping and purchases as physicalstores. The aim of this OMO (online-merge-offline) is to make shopping at ORIHICA even more convenient. During
the first nine months, seven AOKI stores and seven ORIHICA stores were closed to improve the efficiency of store
operations. As a result, the number of stores decreased from 610 at the end of the previous fiscal year to 596 at theend of the third quarter.
These initiatives and other activities resulted in strong sales of formal and casual fashions along with other benefits.
As a result, sales increased 10.1% year on year to 58,400 million yen and there was an operating profit of 1,025
million yen compared with a loss of 2,338 million yen one year earlier.
Anniversaire and Bridal BusinessIn this business, activities continued for efficiently attracting customers by using the internet and social networking
services and for further refining all wedding formats. Prior to the start of a complete renovation of Anniversaire
Omotesando to mark its 25th anniversary in 2023, a café with a Tiffany theme and a Tiffany pop-up store were operated
during the holiday season (scheduled to be opened as a flagship store after renovation). These two additions greatly
increased the number of customers that visited Anniversaire Omotesando.
Sales increased 9.8% year on year to 7,157 million yen and there was an operating profit of 576 million yen comparedwith a loss of 53 million yen one year earlier.
Entertainment Business
KAIKATSU CLUB café complexes are conducting the “An Office Anywhere in Japan” project that includes freeaccess to the e-versions of selected newspapers and other content. As a trial of a new idea, some locations have a “Bizroom” where customers can focus on their business tasks. At COTE D’AZUR karaoke stores, the Provence course
and other party menus were upgraded and there were activities to attract more families and students. FiT24, which
operates 24-hour self-service fitness gyms, is continuing to increase the number of gyms as planned, including
locations with indoor golf. During the first nine months, KAIKATSU CLUB opened four cafés and FiT24 opened 23
gyms. In addition, due to format conversions and measures to improve efficiency, 12 KAIKATSU CLUB cafés andeight COTE D’AZUR karaoke facilities were closed. As a result, including the 111 JIYU KUKAN café complexes
and other locations of RUNSYSTEM (including 60 franchised stores), the number of locations in this businessincreased from 708 at the end of the previous fiscal year to 826 at the end of the third quarter.
Segment sales and earnings increased because of these measures. Sales in this segment increased 24.9% to 52,711
million yen and operating profit was 2,737 million yen compared with a profit of 205 million yen one year earlier.

2

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

Real Estate Leasing Business
Segment sales increased 9.6% to 3,577 million yen mainly because of an increase in the cost of some subleased storesand other facilities. Operating profit decreased 6.8% to 628 million yen.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the third quarter decreased 8,584 million yen from the end of the previous fiscal year to224,424 million yen primarily because of seasonal and other factors.
Current assets decreased 6,338 million yen mainly due to decreases of 5,021 million yen in accounts receivable-tradecaused by seasonal and other factors and 4,954 million yen in cash and deposits, while there was an increase of 1,708
million yen in inventories resulting from an increase in procurement. Non-current assets decreased 2,246 million yen
as property, plant and equipment decreased 1,371 million yen mainly due to depreciation.
Liabilities
Current liabilities decreased 1,360 million yen from the end of the previous fiscal year. There were decreases of 1,350
million yen in accounts payable-trade mainly due to seasonal factors, 1,957 million yen in accrued income taxes dueto the payment of income taxes and 1,034 million yen in provision for bonuses due to the payment of bonuses, while
there were short-term borrowings of 4,000 million yen. Non-current liabilities decreased 8,343 million yen due to adecrease of 7,719 million yen in long-term borrowings for scheduled repayments.
Net assets
Net assets increased 1,119 million yen from the end of the previous fiscal year. There was an increase of 1,523 million
yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
In the Fashion Business, sales have been declining somewhat since the middle of October because of the end of the
upturn in demand following the lifting of pandemic restrictions and the negative impact of rising prices of consumer
necessities on sales of apparel. In all other businesses, sales have generally been consistently strong. Consequently,
consolidated sales in the first nine months were slightly ahead of the pace needed to achieve the original fiscal year
forecast.
There are no revisions to the fiscal year forecast that was announced on November 10, 2022. Inflation is negatively
affecting consumer spending and is raising the cost of raw materials and other items. In addition, results of operations
are significantly affected by the strength of specific markets, such as the “freshers” category (first-year students andemployees) in the Fashion Business.

3

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/22(As of Mar. 31, 2022)(Millions of yen)
Third quarter of FY3/23(As of Dec. 31, 2022)

AssetsCurrent assets
Cash and deposits

37,93732,983

Accounts receivable-trade

11,808

6,787

Inventories

18,33020,038

Other

6,481

8,415

Allowance for doubtful accounts

(44)

(49)

74,51368,175

Buildings and structures, net

66,804

66,345Land

30,76031,021Other, net

15,857

14,683

Total property, plant and equipment

113,422112,051

5,538

6,226

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

Intangible assets
Investments and other assets
Guarantee deposits

6,970

6,721

Leasehold deposit

20,222

19,240Other

12,381

12,064

Allowance for doubtful accounts

(40)

(55)

Total investments and other assets

39,53437,971

158,495

156,248

233,008

224,424

Total non-current assets
Total assets

4

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

(Millions of yen)
Third quarter of FY3/23(As of Dec. 31, 2022)

FY3/22(As of Mar. 31, 2022)
Liabilities
Current liabilities
Accounts payable-trade15,272

13,921

Short-term borrowings

-

4,000

Current portion of long-term borrowings

10,844

11,477

Income taxes payable

2,508

550

Provision for bonuses

1,814

780

44

24

Provision for bonuses for directors (and other officers)
Other

13,93012,300Total current liabilities

44,41543,054Non-current liabilities
44,31436,595Retirement benefit liability

815

850

Asset retirement obligations

7,680

7,907

Other

8,140

7,254

Total non-current liabilities

60,95152,608105,366

95,662

Share capital

23,282

23,282

Capital surplus

23,87023,036

Retained earnings

82,821

84,344

Treasury shares(3,489)(3,490)Total shareholders’ equity

126,484

127,173

Valuation difference on available-for-sale securities

235

591

Remeasurements of defined benefit plans

362

305

Total accumulated other comprehensive income

598

896

Share acquisition rights

559

691

Non-controlling interests--

127,641

128,761

233,008

224,424

Long-term borrowings

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Total net assets
Total liabilities and net assets

5

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

(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 FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Millions of yen)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)

Net sales

102,713

119,074

Cost of sales

66,39074,056Gross profit

36,32345,017

Selling, general and administrative expenses

38,05840,618Operating profit (loss)(1,734)4,398Interest income

49

48

Dividend income

26

36

Other

131

220

Total non-operating profit

207

305

Interest expenses

283

277

Loss on retirement of non-current assets

107

71

Other

593

500

Non-operating profit

Non-operating expenses

Total non-operating expenses

984

849

(2,511)

3,854

Subsidies for employment adjustment

1,643

255

Total extraordinary income

1,643

255

636

849

Ordinary profit (loss)
Extraordinary income

Extraordinary losses
Impairment loss
Loss due to temporary closure

1,434

-

Total extraordinary losses

2,070

849

Profit (loss) before income taxes(2,938)3,260

Income taxes – current

534

714

Income taxes – deferred

(909)

798

Total income taxes

(374)

1,512

Profit (loss)(2,563)

1,747

Loss attributable to non-controlling interests

-

(104)

Profit (loss) attributable to owners of parent(2,563)

1,851

6

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(Millions of yen)First nine months of FY3/23(Apr. 1, 2022 – Dec. 31, 2022)(2,563)

1,747

Valuation difference on available-for-sale securities

(203)

355

Remeasurements of defined benefit plans, net of tax

(7)

(57)

Profit (loss)
Other comprehensive income

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

7

(211)

297

(2,775)2,045(2,775)

2,149

-

(104)

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First nine months of FY3/23 (Apr. 1, 2022 – Dec. 31, 2022)
No reportable information.
Additional Information
Accounting estimates for the impact of COVID-19
There have been no significant changes to the key assumptions used in the accounting estimates for the impact of
COVID-19 described in “Notes (Significant Accounting Estimates)” in the Annual Securities Report for the fiscal
year ended March 31, 2022.
Although there are no significant changes, the following revisions have been made to major assumptions involving
the impact of the pandemic on existing store sales in the current fiscal year as a percentage of results of operations in
the fiscal year that ended on March 31, 2019: from 85% to 88% to 86% to 93% in the fashion business; from 87% to92% (café complex 91% to 97% and karaoke 77% to 82%) to 89% to 92% (café complex 93% to 97% and karaoke
79% to 82%) in the entertainment business; and from 96% to 96% to 100% in the ANNIVERSAIRE and bridal
business as well as a revision of estimated sales per couple in this business from 77% of the March 2019 fiscal year
level to a range of 71% to 77%.
Segment Information
First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021)
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
Fashion53,043---53,043-53,043-53,043Bridal

-

6,514

-

-

6,514

-

6,514

-

6,514

Café complex--

34,883-34,883-34,883-34,883

Karaoke

-

-

4,930

-

4,930

-

4,930

-

4,930

Fitness

-

-

2,377

-

2,377

-

2,377

-

2,377

Other
Revenue fromcontracts withcustomers
Other revenues

-

-

-

-

-

32

32

-

32

53,043

6,514

42,191-

101,750

32

101,782-

101,782

-

-

-

930

930

-

930

-

930

53,043

6,514

42,191930

102,68132

102,713-102,713

0

3

-

2,331

2,335

-

2,335

(2,335)-53,043

6,517

42,191

3,262

105,016

32

105,048(2,335)

102,713External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (2,338)
(53)
205
674
(1,511)
11 (1,500)(234)(1,734)
Notes: 1. The “others” classification is businesses not included in reportable segments such as advertising-related business.
2. The -234 million yen adjustment to segment profit (loss) includes 2,689 million yen in elimination for inter-segment
transactions, and -2,924 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.

8

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2023

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 270 million yen, 363 million yen and 1 million yen were booked
respectively in the first nine months of FY3/22.
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
(569)
4,398
Notes: 1. The “others” classification is businesses not included in reportable segments such as advertising-related business.
2. The -569 million yen adjustment to segment profit (loss) includes 3,159 million yen in elimination for inter-segment
transactions, -76 million yen in amortization of goodwill, and -3,651 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, 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.
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 777
million yen for the first nine months of FY3/23.
* 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.
9