February 4, 2022

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending March 31, 2022
(Nine Months Ended December 31, 2021)
Company name:[Japanese GAAP]
Listings: TSE First Section
URL: https://www.aoki-hd.co.jp/

AOKI Holdings Inc.

Stock code:
8214
Representative:
Akihiro Aoki, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
February 7, 2022
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 4, 2022 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, 2021
(April 1, 2021 – December 31, 2021)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable to
Net sales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Nine months ended Dec. 31, 2021
102,713
8.5(1,734)(2,511)(2,563)Nine months ended Dec. 31, 2020
94,673 (25.5)(12,141)(12,857)(11,441)
Note: Comprehensive income (million yen) Nine months ended Dec. 31, 2021:(2,775) (-%)
Nine months ended Dec. 31, 2020:(10,872) (-%)

Nine months ended Dec. 31, 2021
Nine months ended Dec. 31, 2020

Net income per
share
Yen
(30.21)(135.00)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
227,184
121,980
As of Dec. 31, 2021
237,260
125,850
As of Mar. 31, 2021
Reference: Shareholders’ equity (million yen)
As of Dec. 31, 2021: 121,469

Equity ratio
%
53.5
52.9
As of Mar. 31, 2021: 125,487

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

FY3/21
10.00
FY3/22
5.00
FY3/22 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None

Year-end
Yen

Total
Yen
0.00

10.00

5.00

10.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2022 (April 1, 2021 – March 31, 2022)(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
156,500
9.3
5,000
4,100
1,300
15.32
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:

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

None4) Restatements:

None

Note: Please refer to “Changes in Accounting Policies” on page 9 of the attachments for further information.

(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, 2021:

87,649,504 shares

As of Mar. 31, 2021:

90,649,504 shares

As of Mar. 31, 2021:

5,853,274 shares

Nine months ended Dec. 31, 2020:

84,748,030 shares

2) Number of treasury shares at the end of the period
As of Dec. 31, 2021:

2,746,304 shares

3) Average number of shares outstanding during the period
Nine months ended Dec. 31, 2021:

84,860,387 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 4 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 4, 2022.

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

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

4

2. Quarterly Consolidated Financial Statements and Notes

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

Changes in Accounting Policies

9

Additional Information

10

Segment Information

10

1

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

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 cases began to decline in September
following an upturn during the summer and states of emergency and other restrictions end ed in October. As a result,
the Japanese economy has been recovering. Despite this improvement, the outlook for the economy is still uncertain
because of the current rapid increase in the number of cases caused by the highly infectious omicron variant.
Due to the activities explained in the following section that were accompanied by measures to prevent the spread of
infections, the impact of the pandemic was smaller than one year earlier. Net sales increased 8.5% year-on-year to102,713 million yen, and the operating loss was 1,734 million yen compared with a loss of 12,141 million yen one
year earlier. There was an ordinary loss of 2,511 million yen compared with a loss of 12,857 million yen one year
earlier. Loss attributable to owners of parent was 2,563 million yen compared with a loss of 11,441 million yen one
year earlier.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the first quarter of the current fiscal year. The application of this standard reduced
net sales in the first nine months by 2,809 million yen and reduced the operating loss and ordinary loss by 379
million yen each.
Operating results by segment are as follows.
Fashion Business
One major activity in this business is the expansion of casual apparel, centered on the new category of pajama suits
for today’s “new normal,” with the goal of becoming a provider of both life style and work fashions. Specifically,
the lineup of pajama suits is now about 10 times larger than one year earlier and marketing activities for pajama suits
have been increased, including the use of TV commercials for the first time. This business also launched JOY Casual,a new line of casual apparel based on the concept of “happiness you choose, happiness you wear.” In the women’s
apparel category, we started the MeWORK Project that is primarily focused on functional mix -and-match apparelsets for working women.
During the first nine months of the fiscal year, one AOKI store and one ORIHICA store were opened and six AOKI
stores and four ORIHICA stores were closed to improve the efficiency of this business. There were 621 stores at theend of the third quarter (one combined AOKI/Size MAX store has been changed to counting each format separately)compared with 628 at the end of the previous fiscal year.
Due to many activities during the fiscal year’s first nine months in this business and a small decline in the negative
effects of the pandemic, sales in this segment was mostly unchanged, decreasing 0.2% to 53,043 million yen, andoperating loss was 2,338 million yen, compared with a loss of 4,878 million yen one year earlier, mainly due toreduction in SG&A expenses.
Anniversaire and Bridal Business
During the first nine months, the number of weddings held by this business since the start of operations in 1998
surpassed 100,000. To mark this accomplishment, Anniversaire held the “Kiseki” 100,000 couples appreciation fairfeaturing special plans. As in the previous fiscal year, Anniversaire Café Omotesando operated FENDI CAFFE by
ANNIVERSAIRE for a limited time through a collaboration with the prestigious Fendi brand of Italy. This event
attracted a large number of customers. At the end of the third quarter, there were 10 locations in this business, downfrom 12 at the end of the previous fiscal year because the Tokyo Bay and Kobe locations closed due to the end of thelease at the building they occupied and other reasons.
The performance of this segment improved because of these measures and the higher number of weddings during thefirst nine months compared with one year earlier when there were no weddings and receptions between April 7 andMay 31, 2020. This business also benefited from a small decline in the negative effects of the pandemic. As a result,sales increased 22.3% to 6,517 million yen and there was an operating loss of 53 million yen compared with a 2,603
million yen loss one year earlier.

2

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

Entertainment Business
All COTE D’AZUR cafés resumed normal operations on October 1, 2021 and all other formats of this business
continued to operate along with strict measures for safety during the pandemic. KAIKATSU CLUB café complexes
used numerous measures to attract customers for business activities and study. For example, cafés hav e rooms withlocks for individual use and offer customers original videos of Terashima Bunko. KAIKATSU CLUB also conducted
the Yaki-Curry Fair, which has been very popular every year, strengthened promotional activities and used othermeasures targeting families. FiT24 continued efforts to open more fitness clubs, including four clubs at the same
location as an AOKI store and this business is performing well. During the first nine months, we opened 29
KAIKATSU CLUBs and 43 FiT24 locations. 19 KAIKATSU CLUBs and four COTE D’AZURs were closed forconversions and other measures to improve efficiency. As a result, there were 708 locations in this segment at theend of the third quarter compared with 659 at the end of the previous fiscal year.
The performance of this segment improved because of these measures and benefited from a decline in the negative
effects of the pandemic. Sales in this segment increased 19.6% to 42,191 million yen and operating profit was 205
million yen compared with a loss of 5,517 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 12.6% to 3,262 million yen mainly because of an increase in the subleasing of stores andother facilities that were closed. Operating profit increased 15.0% to 674 million yen.
Information about the application of the accounting standard for revenue recognition , etc. and the effect of thisstandard for each business segment is shown in “Changes in Accounting Policies” on page 9 and “Segment
Information, First nine months of FY3/22, 3. Information related to revisions for reportable segments” on page 11.
(2) Explanation of Financial Position
Balance sheet position
AssetsTotal assets at the end of the third quarter decreased 10,075 million yen from the end of the previous fiscal year to
227,184 million yen mainly due to seasonal factors.
Current assets decreased 9,221 million yen from the end of the previous fiscal year. There were decreases of
4,087 million yen in cash and deposits due to repayments of borrowings and 4,532 million yen in accounts
receivable-trade due to seasonal factors. Non-current assets decreased 854 million yen from the end of the previous
fiscal year as property, plant and equipment decreased 935 million yen mainly due to depreciation.
Liabilities
Current liabilities decreased 4,865 million yen from the end of the previous fiscal year. There were decreases of
2,454 million yen in accounts payable-trade mainly due to seasonal factors and 2,660 million yen in electronicallyrecorded obligations-operating. Non-current liabilities decreased 1,340 million yen. There was a decrease of 1,125
million yen in long-term borrowings mainly due to a 9,000 million yen of long-term new loan and scheduled
repayment.
Net assets
Net assets decreased 3,870 million yen from the end of the previous fiscal year. There was a decrease of 3,878
million yen in retained earnings due to a loss attributable to owners of parent, the application of the accounting
standard for revenue recognition and dividend from surplus.

3

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
The performance of the Fashion Business has been recovering slowly since October when states of emergency andother restrictions ended. In other businesses, the pace of the recovery is somewhat s lower because of soft demandand other reasons. Overall, sales in the first nine months were generally in line with the fiscal year forecast andlosses improved slightly to achieve the fiscal year forecast.
Although there are concerns about how much another wave of infections caused by the omicron variant will affectbusiness operations, there are no revisions to the consolidated forecast that was announced on November 5, 2021.
One reason is that the fourth quarter (mainly late February and March) usually a ccounts for a large share of fiscal
year sales in the Fashion Business.

4

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/21(As of Mar. 31, 2021)(Millions of yen)
Third quarter of FY3/22(As of Dec. 31, 2021)

AssetsCurrent assets
Cash and deposits

29,94125,854

Accounts receivable-trade

10,686

6,153

Inventories

20,112

19,862

Other

7,152

6,799

Allowance for doubtful accounts

(40)

(40)

67,852

58,631

Buildings and structures, net

68,87569,798Land

36,13836,117

Other, net

17,755

15,917

Total property, plant and equipment

122,769

121,833

5,505

5,587

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

Intangible assets
Investments and other assets
Guarantee deposits

7,409

7,022

Leasehold deposit

20,752

20,555

Other

13,011

13,593

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,133

41,132

169,407

168,553

237,260

227,184

Total non-current assets
Total assets

5

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

(Millions of yen)
Third quarter of FY3/22(As of Dec. 31, 2021)

FY3/21(As of Mar. 31, 2021)
Liabilities
Current liabilities
Accounts payable-trade

14,241

11,786

Electronically recorded obligations-operating

2,660

-

Short-term borrowings

11,0006,500

Current portion of long-term borrowings

5,418

10,627

Income taxes payable

679

143

Provision for bonuses

1,013

716

-

60

Other

12,82913,141

Total current liabilities

47,842

42,97645,91444,788Provision for bonuses for directors (and other officers)

Non-current liabilities
Long-term borrowings

320-

Retirement benefit liability

1,192

1,245

Asset retirement obligations

7,560

7,757

Other

8,580

8,436

Total non-current liabilities

63,56762,227

111,409105,203

Share capital

23,282

23,282

Capital surplus

27,74723,870Retained earnings

81,571

77,693

Treasury shares(7,438)(3,489)Total shareholders’ equity

125,162

121,356

Valuation difference on available-for-sale securities

251

47

Remeasurements of defined benefit plans

72

65

Total accumulated other comprehensive income

324

112

Provision for point card certificatesTotal liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Share acquisition rights
Total net assets
Total liabilities and net assets

6

363

511

125,850

121,980

237,260

227,184

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

(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 FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(Millions of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)

Net sales

94,673

102,713

Cost of sales

67,23866,390Gross profit

27,43536,323

Selling, general and administrative expenses

39,57638,058Operating loss

(12,141)(1,734)

Interest income

5049Dividend income

27

26

Other

178

131

Total non-operating profit

256

207

Interest expenses

267

283

Loss on retirement of non-current assets

405

107

Other

299

593

Non-operating profit

Non-operating expenses

Total non-operating expenses

972

984

(12,857)(2,511)Gain on sale of investment securities

4-

Subsidies for employment adjustment

637

1,643

Total extraordinary income

642

1,643

1,242

636

919

-

Loss due to temporary closure

1,990

1,434

Business restructuring expenses

202

-

4,355

2,070

Ordinary loss
Extraordinary income

Extraordinary losses
Impairment loss
Loss on valuation of investment securities

Total extraordinary losses
Loss before income taxes(16,569)(2,938)

Income taxes - current

448

534

Income taxes - deferred(5,576)(909)

Total income taxes(5,128)

(374)

Loss

(11,441)(2,563)

Loss attributable to owners of parent(11,441)(2,563)

7

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)First nine months of FY3/21(Apr. 1, 2020 – Dec. 31, 2020)(Millions of yen)First nine months of FY3/22(Apr. 1, 2021 – Dec. 31, 2021)(11,441)(2,563)

Valuation difference on available-for-sale securities

519

(203)

Remeasurements of defined benefit plans, net of tax

48

(7)

Loss
Other comprehensive income

Total other comprehensive income
Comprehensive income

568

(211)

(10,872)(2,775)(10,872)(2,775)--Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First nine months of FY3/22 (Apr. 1, 2021 – Dec. 31, 2021)
No reportable information.
Changes in Accounting Policies
Application of the Accounting Standard for Revenue Recognition, etc.
The Company has applied the Accounting Standard for Revenue Recognition (ASBJ Statement No. 29, March 31,2020), etc. from the beginning of the first quarter of the current fiscal year. Based on this standard, revenue expected
to be received in exchange for the provision of goods and services is recognized when the control of the promised
goods and services is transferred to customers. In the Fashion Business, in prior years expected expenses for the
future exchanges of loyalty points concerning products and services were recorded as an allowance. Due to this new
accounting standard, in cases where these points give customers a significant right, the points are categorized as aperformance obligation to provide goods or services and the recognition of revenue is deferred. For apparel andother items in the Anniversaire and Bridal Business and gift cards and other items in the Entertainment Business, thetotal amounts of these items were recognized as revenue in prior years. Due to this new accounting standard, these
are classified as items that perform a role in the provision of goods and services to customers (direct ly or to anagent). As a result, the net rather than gross amounts of these items are now recognized as revenue.
For the application of the accounting standard for revenue recognition, etc., in accordance with the transitional
treatment in the proviso to paragraph 84 of this standard, the cumulative effect of the retrospective application of the
new accounting standard, if it is applied prior to the first quarter of the current fiscal year, is added to or subtracted
from retained earnings at the beginning of the first quarter of the current fiscal year. The new standard is thenapplied beginning with this amount of retained earnings. However, the Company has applied the method prescribedin paragraph 86 of this standard and has not retrospectively applied the new accounting policy to contracts in whichalmost all revenue were recognized in accordance with the previous treatment prior to the beginning of the firstquarter of the current fiscal year.
As a result, net sales decreased 2,809 million yen, cost of sales decreased 3,150 million yen, and selling, general andadministrative expenses decreased 38 million yen. Operating loss, ordinary loss and loss before income taxes
declined 379 million yen each in the first nine months of the current fiscal year. In addition, there was a decrease of889 million yen in retained earnings at the beginning of the current fiscal year.
Due to the application of the revenue recognition accounting standard, etc., the provision for point card certificatesthat was presented in the non-current liabilities section of the consolidated balance sheet in the previous fiscal year
is, from the first quarter of the current fiscal year, presented as an option to acquire additional goods or services,with a portion of the transaction price allocated to the option and the contractual liability included in the other undercurrent liabilities until expired due to use or expiration. In accordance with the transitional treatment prescribed inparagraph 89-2 of the accounting standard for revenue recognition, no reclassification has been made to the prioryear’s consolidated financial statements to conform to the new presentation. Furthermore, in accordance with thetransitional treatment prescribed in paragraph 28-15 of the Accounting Standard for Quarterly Financial Reporting(ASBJ Statement No. 12, March 31, 2020), the Company has not presented information on revenue from contracts
with customers broken down for the first nine months of the previous fiscal year.

9

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

Application of the Accounting Standard for Fair Value Measurement, etc.
The Company has applied the Accounting Standard for Fair Value Measurement (ASBJ Statement No. 30, July 4,2019), etc. from the beginning of the first quarter of the current fiscal year, and has applied the new accou nting
policies set forth by the Accounting Standard for Fair Value Measurement, etc. prospectively in accordance with thetransitional treatment in the paragraph 19 of the Accounting Standard for Fair Value Measurement and paragraph44-2 of the Accounting Standard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effectof the application of these standards on the quarterly consolidated financial statements.
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, 2021.
Assumptions for existing store sales in the current fiscal year in relation to sales in the fiscal year ended March 31,
2019, when there was no pandemic, are among the major assumptions in this Annual Securities Report. There is nochange in the assumption in the Fashion Business and the Entertainment Business that was revised during the firsthalf of the current fiscal year. There is also no change in the assumption for sales per couple in the Anniversaire andBridal business.
Segment Information
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

Anniversaire
Fashionand Bridal

Entertainment

RealEstateLeasing

Others(Note
1)
Subtotal

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

Sales
External sales
Inter-segment sales
and transfers
Total

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

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 adv ertising-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, the 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.

10

AOKI Holdings Inc. (8214) Third Quarter of the Fiscal Year Ending March 31, 2022

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 refers to 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.

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 islittle 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.
3. Information related to revisions for reportable segments
As described in Changes in Accounting Policies, the Company has applied the Accounting Standard for Revenue
Recognition, etc. from the beginning of the first quarter of FY3/22 and changed the accounting method for reven ue
recognition. Accordingly, the method for calculating segment profit or loss has been changed as well.
Compared with the previous method, sales increased 431 million yen and segment loss decreased 431 million yen in
the Fashion Business in the first nine months of FY3/22. Sales decreased 2,876 million yen and there were no effecton segment loss in the Anniversaire and Bridal Business. In the Entertainment Business, sales decreased 364 million
yen and segment profit decreased 51 million yen.

* 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.

11