May 12, 2022

Summary of Consolidated Financial Results for the Fiscal Year Ended March 31, 2022
[Japanese GAAP]
Listings: Tokyo Stock Exchange
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 Annual General Meeting of Shareholders:June 29, 2022
Scheduled date of filing of Annual Securities Report:
June 29, 2022
Scheduled date of payment of dividend:
June 8, 2022
Preparation of supplementary materials for financial results:
Yes
Holding of financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on May 12, 2022 at 14:20 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2022 (April 1, 2021 – March 31, 2022)(1) Consolidated results of operations
Net sales

Operating profit

Million yen%
FY3/22
154,916
8.2
FY3/21
143,169(20.6)
Note: Comprehensive income (million yen)

Million yen%
5,443(5,793)
FY3/22: 2,838 (-%)

(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
Million yen%
Million yen
%
4,360
2,563
(6,606)(11,931)
FY3/21: (10,775) (-%)

Net income per
Diluted net income
Return on equity
share
per share
Yen
Yen%
FY3/2230.21
2.0
FY3/21(140.77)(9.0)
Reference: Equity in income of affiliates (million yen)
FY3/22: -Ordinary profit on
total assets
%
1.9
(2.8)
FY3/21: -Operating profit to
sales
%
3.5
(4.0)

(2) Consolidated financial position
Total assets
Million yen
As of Mar. 31, 2022
233,008
As of Mar. 31, 2021
237,260
Reference: Shareholders’ equity (million yen)

Net assets
Million yen
127,641
125,850
As of Mar. 31, 2022: 127,082

Equity ratio%

Net assets per share
Yen
54.5
1,496.80
52.9
1,479.87
As of Mar. 31, 2021: 125,487(3) Consolidated cash flow position
Cash flows fromoperating activities
Million yen
17,132
4,351

FY3/22
FY3/21

Cash flows frominvesting activities
Million yen
886(11,518)

Cash flows fromfinancing activities
Million yen(10,023)
13,265

Cash and cash equivalents
at end of period
Million yen
37,93729,941

2. Dividends
Dividend per share
1Q-endYen
FY3/21
FY3/22
FY3/23 (forecasts)-

2Q-end3Q-end

Yen
10.00
5.00
7.00

Yen

Year-end

Total

Yen
0.00
5.00
8.00

Yen
10.00
10.00
15.00

-

Dividend payout Dividend on
ratio
equity(consolidated) (consolidated)
Million yen
%
%
847
0.6
849
33.1
0.7
39.2
Total
dividends

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2023 (April 1, 2022 – March 31, 2023)
Net sales
Full year

Million yen
166,100

Operating profit%
7.2

Million yen
7,700

%
41.5

(Percentages represent year-on-year changes)
Profit attributable to
Net income per
Ordinary profit
owners of parent
shareMillion yen%
Million yen
%
Yen
7,000
60.5
3,250
26.8
38.28

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) 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(3) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury shares) at the end of the period
As of Mar. 31, 2022:

87,649,504 shares

As of Mar. 31, 2021:

90,649,504 shares

As of Mar. 31, 2021:

5,853,274 sharesFiscal year ended Mar. 31, 2021:

84,759,153 shares

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

2,746,514 shares

3) Average number of shares outstanding during the period
Fiscal year ended Mar. 31, 2022:

84,870,219 shares

Note 1: This financial report is not subject to audit 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 “1.
Overview of Results of Operations, etc. (4) Outlook” on page 5 of the attachments regarding preconditions or other related
matters for the forecast shown above.
Supplementary materials for financial results
Supplementary materials for financial results will be available on the Company’s website immediately after the earnings
announcement on Thursday, May 12, 2022.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by web conference on Thursday,
May 26, 2022. Materials to be distributed at this event will be available on the Company’s website on the morning of themeeting.

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

Contents of Attachments
Pages
1. Overview of Results of Operations, etc.

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows

4(4) Outlook

5

2. Basic Approach for the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

8

Consolidated Statement of Income

8

Consolidated Statement of Comprehensive Income

9(3) Consolidated Statement of Changes in Shareholders’ Equity

10(4) Consolidated Statement of Cash Flows

12(5) Notes to Consolidated Financial Statements

13

Going Concern Assumption

13

Changes in Accounting Policies

13

Material Accounting-based Estimates

14

Reclassifications

16

Segment and Other Information

17

Per Share Information

19

Subsequent Events

19

4. Other

19

Changes in Directors

19

1

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

1. Overview of Results of Operations, etc.
(1) Results of Operations
In the fiscal year that ended in March 2022, the economy continued to recover, although the pickup of economic
activity was sluggish due to the spread of mutant strains of the COVID-19 virus. The situation remained challenging
due also to rising raw material prices. Furthermore, the outlook for the Japanese economy is uncertain because of
uncertainty about overseas conditions and exchange rate volatility. The AOKI Group implemented numerous
measures in all business segments as explained below in response to this challenging business climate and lifestylechanges. The results for the fiscal year were as follows.
Net sales

154,916 million yen (up 8.2% year-on-year)

Operating profit

5,443 million yen (loss of 5,793 million yen one year earlier)Ordinary profit

4,360 million yen (loss of 6,606 million yen one year earlier)Profit attributable to owners of parent

2,563 million yen (loss of 11,931 million yen one year earlier)Business segment performance was as follows.
Fashion BusinessIn the Fashion Business, we held a Freshers Support Fair, featuring J-pop idol group Sexy Zone and actress Mio
Imada as campaign characters, for freshers who are taking the next step in their lives amid the COVID-19 pandemic.
The fair was very well received by the public. In terms of products, the line-up of the blockbuster pajama suits, ofwhich a total of more than 100,000 pieces have been sold since its launch in November 2020, was expanded, and a
new line of related products, pajama shoes, which combine both a relaxed and neat feel, was launched. In addition,
there was an expansion in the range of various items in the women’s apparel category, including MeWORK Projectproducts, and mix and match products. One AOKI store and one ORIHICA store were opened and 10 AOKI storesand 11 ORIHICA stores were closed to improve the efficiency of this business. There were 610 stores at the end of
the fiscal year (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.
As a result, sales increased by 3.8% from the previous fiscal year to 88,642 million yen and operating profit by
219.9% to 4,795 million yen, mainly due to strong sales during the “freshers” season from late February to Marchand a slight decline in the impact of the COVID-19 pandemic throughout the year.
Anniversaire and Bridal BusinessIn the ANNIVERSAIRE and Bridal Business, the number of weddings held since the start of operations in 1998
surpassed 100,000. To mark this accomplishment, Anniversaire held the “Kiseki” 100,000 couples appreciation fair
for about 10 months. The fair featured special plans. In addition, we developed new proposals for chapel weddings
and family weddings to suit new lifestyles. At the end of the fiscal year, there were 10 locations in this business,down from 12 at the end of the previous fiscal year because two locations closed due to the end of the lease at thebuilding they occupied and other reasons.
The performance of this segment improved because of these measures and the higher number of weddings during the
fiscal year compared with one year earlier when there were no weddings and receptions between April 7 and May 31,
2020. This business also benefited from a small decline in the negative effects of the pandemic throughout the fiscal
year. As a result, sales were 7,976 million yen and there was an operating loss of 580 million yen compared with a
3,088 million yen loss one year earlier. The year-on-year comparison is not shown because the application ofrevenue recognition standard will have a significant impact on sales.
Entertainment BusinessIn the Entertainment Business, operating hours were shortened in areas where priority measures to prevent the
spread of the COVID-19 pandemic were in effect. All other formats of this business continued to operate along withstrict measures for safety during the pandemic. KAIKATSU CLUB café complexes promoted the Japan Anywhere
Office Project in response to rising demand for telework and telestudy, introduced completely private rooms with2

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

locks, improved convenience through a variety of payment methods and introduced new business and learning
content. COTE D’AZUR karaoke locations introduced a student-only free-time plan and proposed new ways toenjoy karaoke through video streaming and a smartphone connection kit service, etc. FiT24 continued to perform
well as 24-hour self-service fitness gyms against the backdrop of growing health consciousness. During the fiscal
year, we opened 29 KAIKATSU CLUBs and 45 FiT24 locations. Twenty-one KAIKATSU CLUBs and four COTE
D’AZURs were closed for conversions and other measures to improve efficiency. As a result, there were 708
locations in this segment at the end of the fiscal year 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 throughout the fiscal year. Sales in this segment increased 17.5% to 56,993 million yen andoperating profit was 590 million yen compared with a loss of 5,190 million yen one year earlier.
Real Estate Leasing Business
Segment sales increased 14.3% to 4,429 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 30.2% to 883 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 13 and “Segment andOther Information, 5. Information related to revisions for reportable segments” on page 18.
(2) Financial Position
Balance sheet position
AssetsTotal assets at the end of the fiscal year decreased 4,251 million yen from the end of the previous fiscal year to
233,008 million yen.
Current assets increased 6,661 million yen from the end of the previous fiscal year. There was an increase of 7,995
million yen in cash and deposits, while there was a decrease of 1,782 million yen in inventories due to improved
inventory management in the Fashion Business. Non-current assets decreased 10,912 million yen from the end of theprevious fiscal year as property, plant and equipment decreased 9,346 million yen mainly due to sales of non-current
assets and other factors.
Liabilities
Current liabilities decreased 3,426 million yen from the end of the previous fiscal year. There was a decrease of
11,000 million yen in repayments of short-term borrowings, while there were increases of 5,426 million yen incurrent portion of long-term borrowings and 1,829 million yen in income taxes payable. Non-current liabilities
decreased 2,616 million yen. There were decreases of 1,599 million yen in long-term borrowings mainly due to a
10,000 million yen of new loan and scheduled repayment, 376 million yen in retirement benefit liability and 320
million yen in provision for point card certificates.
Net assets
Net assets increased 1,791 million yen from the end of the previous fiscal year. There was an increase of 1,249
million yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus.

3

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(3) Cash Flows
Cash flow position(Millions of yen)
FY3/22

FY3/21
Cash flows from operating activities

4,351

17,132

Cash flows from investing activities(11,518)

886

Cash flows from financing activities

13,265(10,023)

Increase (decrease) in cash and cash equivalents

6,098

7,995

Cash and cash equivalents at beginning of period

23,84329,941

Cash and cash equivalents at end of period

29,94137,937

Cash and cash equivalents at the end of the fiscal year under review increased 7,995 million yen from the end of theprevious fiscal year to 37,937 million yen mainly due to an increase in profit before income taxes and decreases inproceeds from sales of property, plant and equipment and purchase of property, plant and equipment, while there
were repayments of short-term borrowings.
Net cash provided by operating activities increased 12,780 million yen to 17,132 million yen on a year-on-year basis.
The principal factors were profit before income taxes of 5,704 million yen, depreciation of 9,172 million yen andimpairment loss of 2,881 million yen, while there was an increase in trade receivables of 1,122 million yen.
Net cash provided by investing activities increased 12,405 million yen to 886 million yen on a year-on-year basis.
This was mainly due to proceeds from sales of property, plant and equipment of 9,323 million yen, while there were
payments of 7,523 million yen for the purchase of property, plant and equipment for capital investment and thepurchase of intangible assets of 854 million yen.
Net cash used in financing activities decreased 23,288 million yen to 10,023 million yen on a year-on-year basis.
This was mainly due to the repayments of short-term borrowings of 11,000 million yen, long-term borrowings of
6,173 million yen and lease obligations of 2,418 million yen, while there were proceeds from long-term borrowingsof 10,000 million yen for capital investment.

4

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(4) Outlook
The outlook is expected to remain uncertain due to the spread of mutant strains of the COVID-19 virus and rising
raw material prices. In this uncertain environment, we will continue to take numerous measures in each of ourbusinesses for the creation of new forms of value by providing products and services that match new life styles.
In the Fashion Business, as a provider of both life style and work fashions with the concept of “AOKI of Life &Work Style,” the Group will focus on the planning, development, and expansion of business apparel and productlines for casual and working women, centered on the pajama series.
In the ANNIVERSAIRE and Bridal Business we will continue to upgrade the wedding formats and reexamine thecost structure, including the sales strategy to lower expenses.
The Entertainment Business will introduce a variety of content and new services with the aim of expanding businessdemand, while at the same time focusing on improving the efficiency of store operations. New store openings,
including those postponed from the previous fiscal year, are planned with four for KAIKATSU CLUB and 25 for
FiT24.
By taking all of these actions, the AOKI Group is aiming to improve operations for higher efficiency in all businesssegments in the fiscal year ending in March 2023.
Business segment forecasts are as follows.
Business segment forecasts for the fiscal year ending March 31, 2023
(Millions of yen)
FashionAnniversaire andBridalEntertainment

Real Estate Leasing

Consolidated

Sales

90,0009,050

65,6504,500

166,100

YoY change (%)

101.5

113.5

115.2

101.6

107.2

Segment profit

5,500

300

2,000

750

7,700

YoY change (%)

114.7

-

338.9

84.9

141.5

Note: Segment profit is operating profit. Total segment profit differs from consolidated operating profit because of other businessand consolidation adjustments.

Business segment forecasts are based on the following assumptions for changes in existing-store sales.
1Q

2Q

1H

3Q

4Q

2H

(%)
Full year

Fashion

10.8

4.3

8.0

4.2

(1.1)

0.9

3.3

Entertainment

14.0

7.8

10.7

0.9

11.8

6.2

8.4

Note: The ANNIVERSAIRE and Bridal Business expects an increase of 121.7% year-on-year in the number of weddings for
ANNIVERSAIRE weddings (excluding family weddings and photo weddings) at existing facilities.

2. Basic Approach for the Selection of Accounting Standards
The AOKI Group’s operations are located in Japan and the Group has little or no need of raising funds in overseas
markets. Moreover, the percentage of shares held by foreign shareholders is relatively small. In view of the above
factors the Company currently uses Japanese accounting standards for its financial statements.
The Company will consider using International Financial Reporting Standards (IFRS) if considered necessary by the
future direction of the Group’s business development, the use of IFRS by other companies in Japan and otherfactors.

5

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY3/21(As of Mar. 31, 2021)(Millions of yen)
FY3/22(As of Mar. 31, 2022)

AssetsCurrent assets
Cash and deposits

29,94137,937

Accounts receivable-trade

10,686

11,808Inventories

20,112

18,330

Other

7,152

6,481

Allowance for doubtful accounts

(40)

(44)

67,85274,513

147,565

143,481

Accumulated depreciation(78,690)(76,676)

Buildings and structures, net

68,87566,804

19,31819,452(10,830)(11,239)

8,487

8,212

36,13830,760Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures

Machinery, vehicles, tools, furniture and fixtures
Accumulated depreciation
Machinery, vehicles, tools, furniture and fixtures, net
Land
Lease assets

17,64718,806(10,684)(12,234)

Lease assets, net

6,962

6,571

Construction in progress

2,305

1,073

122,769

113,422

5,505

5,538

Accumulated depreciation

Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities

2,612

2,477

Guarantee deposits

7,409

6,970

Leasehold deposit

20,752

20,222

Deferred tax assets

8,538

8,243

Other

1,860

1,660

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,13339,534

169,407

158,495

237,260

233,008

Total non-current assets
Total assets

6

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(Millions of yen)
FY3/22(As of Mar. 31, 2022)

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

14,241

15,272

Electronically recorded obligations-operating

2,660

-

Short-term borrowings

11,000-Current portion of long-term borrowings

5,418

10,844

Lease obligations

2,200

1,864

Accounts payable-other

5,083

6,632

Income taxes payable

679

2,508

Contractual liability

-

1,130

Provision for bonuses

1,013

1,814

-

44

Other

5,545

4,303

Total current liabilities

47,842

44,415Long-term borrowings

45,91444,314

Lease obligations

5,144

4,946

Provision for bonuses for directors (and other officers)

Non-current liabilities

320-

Retirement benefit liability

1,192

815

Asset retirement obligations

7,560

7,680

Other

3,435

3,193

Total non-current liabilities

63,56760,951

111,409105,366

Share capital

23,282

23,282

Capital surplus

27,74723,870

Provision for point card certificatesTotal liabilities
Net assets
Shareholders’ equity

Retained earnings

81,571

82,821

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

125,162

126,484

251

235

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

72

362

Total accumulated other comprehensive income

324

598

Share acquisition rights
Total net assets
Total liabilities and net assets

7

363

559

125,850

127,641

237,260

233,008

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)

Net sales

143,169

154,916

Cost of sales

94,805

95,279Gross profit

48,364

59,636

Selling, general and administrative expenses

54,15754,193Operating profit (loss)(5,793)

5,443

67

69

Non-operating profit
Interest income
Dividend income

27

26

Other

270

173

Total non-operating profit

365

269

Interest expenses

357

376

Loss on retirement of non-current assets

443

185

Loss on store closings

68

333

Non-operating expenses

Other

309

456

1,178

1,351

(6,606)

4,360

-

3,994

Gain on sale of investment securities

4-

Gain on reversal of share acquisition rights

70-

Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets

Subsidies for employment adjustment

691

1,968

Total extraordinary income

767

5,962

Impairment loss

1,991

2,881

Loss on valuation of investment securities

1,369

153

Loss due to temporary closure

2,200

1,583

Business restructuring expenses

213-

Total extraordinary losses

5,775

4,618

Profit (loss) before income taxes

Extraordinary losses(11,614)

5,704

Income taxes – current

786

3,028

Income taxes – deferred

(470)

112

Total income taxes

316

3,141

Profit(11,931)

2,563

Profit (loss) attributable to owners of parent(11,931)

2,563

8

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

Consolidated Statement of Comprehensive Income
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(11,931)2,563

Valuation difference on available-for-sale securities

977

(15)

Remeasurements of defined benefit plans, net of tax

177

290

1,155

274

(10,775)

2,838(10,775)

2,838

-

-

Profit (loss)
Other comprehensive income

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

9

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(3) Consolidated Statement of Changes in Shareholders’ Equity
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)
Shareholders’ equity
Share capital
Balance at the beginning of period

Capital surplus

23,282

27,823Retained earnings Treasury shares
96,298(7,592)

Total
shareholders’equity139,812

Changes during period
Dividend of surplus(2,795)(2,795)

Loss attributable to owners ofparent(11,931)(11,931)

Purchase of treasury shares
Disposal of treasury shares

(76)

(0)

(0)

154

77

Net changes in items other thanshareholders’ equity
Total changes during period

-

(76)

(14,726)

153(14,649)

Balance at the end of period

23,282

27,747

81,571(7,438)125,162

Accumulated other comprehensive income
Remeasurements
Unrealized gainof defined benefit
on securities
plans
Balance at the beginning of period

(726)

(105)

Total accumulated
othercomprehensive
income(831)

Shareacquisitionrights228

Total net assets

139,209

Changes during period
Dividend of surplus(2,795)

Loss attributable to owners ofparent(11,931)

Purchase of treasury shares(0)

Disposal of treasury shares77

Net changes in items other thanshareholders’ equity

977

177

1,155

135

1,290

Total changes during period

977

177

1,155

135

(13,359)

Balance at the end of period

251

72

324

363

125,850

10

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Millions of yen)
Shareholders’ equity
Share capital
Balance at the beginning of period

Capital surplus

23,282

27,747Retained earnings Treasury shares
81,571

Cumulative effects of changes inaccounting policies
Restated balance(7,438)(889)
23,282

27,74780,681

Total
shareholders’equity125,162(889)(7,438)124,273

Changes during period
Dividend of surplus

(424)

(424)

Loss attributable to owners ofparent

2,563

2,563

Purchase of treasury shares
Disposal of treasury shares
Cancellation of treasury shares

(0)

(0)

(64)

136

71

(3,812)

3,812

Net changes in items other thanshareholders’ equity
Total changes during period-(3,876)

2,139

3,948

2,210

Balance at the end of period

23,282

23,87082,821(3,489)126,484

Accumulated other comprehensive income
Remeasurements
Unrealized gainof defined benefit
on securities
plans
Balance at the beginning of period

251

72

Total accumulated
othercomprehensive
income324

Shareacquisitionrights363

Cumulative effects of changes inaccounting policies
Restated balance

Total net assets

125,850
(889)

251

72

324

363

124,961

Changes during period
Dividend of surplus(424)

Loss attributable to owners ofparent2,563

Purchase of treasury shares(0)

Disposal of treasury shares

71

Cancellation of treasury shares
Net changes in items other thanshareholders’ equity

(15)

290

274

195

469

Total changes during period

(15)

290

274

195

2,680

Balance at the end of period

235

362

598

559

127,641

11

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(4) Consolidated Statement of Cash Flows
FY3/21(Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(11,614)

5,704

Depreciation

9,380

9,172

Impairment loss

1,991

2,881

Loss due to temporary closure

2,200

1,583

Cash flows from operating activities
Profit (loss) before income taxes

Increase (decrease) in retirement benefit liability
Increase (decrease) in provision for point cardcertificatesInterest and dividend income

184

62

(374)

(320)

(94)

(96)

Interest expenses

357

376

Gain on sale of non-current assets(1)(3,994)(691)(1,968)

Subsidies for employment adjustment
Loss on valuation of investment securities

1,369

153

Decrease (increase) in trade receivables(2,230)(1,122)

Decrease (increase) in inventories

4,069

1,782

Increase (decrease) in trade payables

(322)

1,030

-

1,130

Increase (decrease) in accrued consumption taxes

(160)

1,741

Other

634

(412)

Subtotal

Increase (decrease) in contractual liability

4,699

17,705Interest and dividend income received

120

70

Interests paid

(348)

(378)

Income taxes paid

(840)

(1,104)

Income taxes refund

1,869

263

691

1,968

Payments for loss due to temporary closure(1,839)(1,394)

Net cash provided by (used in) operating activities

4,351

17,132(10,270)(7,523)

4

9,323

Purchase of intangible assets

(670)

(854)

Payments for leasehold and guarantee deposits
Proceeds from collection of leasehold and guarantee
deposits
Net decrease (increase) in trust beneficiary rights

(931)

(314)

551

894

334

(10)

Subsidies for employment adjustment received

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment

Other
Net cash provided by (used in) investing activities

(535)

(629)

(11,518)886

11,000(11,000)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings

11,00010,000

Repayments of long-term borrowings(3,493)(6,173)

Repayments of lease obligations(2,446)(2,418)(0)(0)

Dividends paid

(2,795)(431)

Net cash provided by (used in) financing activities

13,265(10,023)(0)(0)

Purchase of treasury shares

Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents

6,098

7,995

Cash and cash equivalents at beginning of period

23,84329,941

Cash and cash equivalents at end of period

29,94137,937

12

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(5) Notes to Consolidated Financial Statements
Going Concern Assumption
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 fiscal year ended March 2022 (FY3/22). Based on this standard, revenue
expected to be received in exchange for the provision of goods and services is recognized when the control of thepromised 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 tothis new accounting standard, in cases where these points give customers a significant right, the points are
categorized as a performance obligation to provide goods or services and the recognition of revenue is deferred. For
apparel and other items in the ANNIVERSAIRE and Bridal Business and gift cards and other items in theEntertainment Business, the total 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 tocustomers (directly or to an agent). As a result, the net rather than gross amounts of these items are now recognized
as revenue.
For the application of the revenue recognition accounting standard, 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 FY3/22, is added to or subtracted from retained earnings at the
beginning of FY3/22. The new standard is then applied beginning with this amount of retained earnings. However,
the Company has applied the method prescribed in paragraph 86 of this standard and has not retrospectively applied
the new accounting policy to contracts in which almost all revenue were recognized in accordance with the previous
treatment prior to the beginning of FY3/22. In addition, due to the application of the method prescribed in paragraph86-1 of the new standard, for contract revisions made prior to the beginning of FY3/22, an accounting treatment
based on all contract revisions is used. The cumulative effect is added to or subtracted from retained earnings at the
beginning of FY3/22.
The provision for point card certificates that was presented in the non-current liabilities section of the consolidatedbalance sheet in the previous fiscal year is, beginning with FY3/22, included in the contractual liability undercurrent liabilities. In accordance with the transitional treatment prescribed in paragraph 89-2 of the accounting
standard for revenue recognition, no reclassification has been made to the prior year’s consolidated financial
statements to conform to the new presentation.
As a result, in the consolidated balance sheet for FY3/22, contractual liability increased 1,130 million yen, provision
for point card certificates decreased 231 million yen and other under current liabilities decreased 465 million yen,
compared to before the application of the revenue recognition accounting standard, etc. In the consolidated
statement of income for FY3/22, net sales decreased 3,456 million yen, cost of sales decreased 3,833 million yen,selling, general and administrative expenses decreased 78 million yen and operating profit, ordinary profit and profit
before income taxes increased 456 million yen each.
In the consolidated statement of cash flows for FY3/22, profit before income taxes increased 456 million yen andother (trade payables) decreased 465 million yen.
Due to the inclusion of the cumulative effect of these measures on net assets at the beginning of FY3/22, retained
earnings at the beginning of this fiscal year in the consolidated statement of changes in shareholders’ equity
decreased 889 million yen.
The effect on per share information is provided in the corresponding section of this report.
In accordance with the transitional treatment prescribed in paragraph 89-3 of the revenue recognition accounting
standard, there is no note concerning “revenue recognition matters” for the previous fiscal year.

13

AOKI Holdings Inc. (8214) Fiscal Year Ended 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 FY3/22, and has applied the new accounting policies set forth by the AccountingStandard for Fair Value Measurement, etc. prospectively in accordance with the transitional treatment in theparagraph 19 of the Accounting Standard for Fair Value Measurement and paragraph 44-2 of the AccountingStandard for Financial Instruments (ASBJ Statement No. 10, July 4, 2019). There is no effect of the application ofthese standards on the consolidated financial statements.
Material Accounting-based Estimates
1. Impairment losses on non-current assets for stores(1) Amounts shown on consolidated financial statements for FY3/22(Millions of yen)
FY3/22
FashionAnniversaire and Bridal

Entertainment

Book value of non-current assets by segment at
end of period (After recording impairment losses)*

54,66928,787

61,477

Impairment loss

2,418

-

459

* Includes non-current assets for stores and corporate assets(2) Information concerning significant accounting estimates for identifiable items
i. Calculation method for estimates
The identification of the need for impairment and the recognition and measurement of impairment losses utilize
estimates of budgets in the following fiscal year and future cash flows for individual stores.
Individual stores are the smallest unit used for sources of independent cash flows. Indications of the need for
impairment are monitored primarily at stores that have an operating loss for two consecutive years, stores that were
unprofitable in FY3/22 and are expected to remain unprofitable in the following fiscal year, stores where the fairvalue of non-current assets has decreased significantly, and stores that are to be closed. At stores where there is aneed for impairment, future cash flows are estimated and if total cash flows before discounting are less than thebook value of the store’s non-current assets, the book value is reduced to the amount that can be recovered and thisreduction is recognized as an impairment loss. The amount that can be recovered is the higher of the net sales
proceeds and the utilization value.
ii. Major assumptions
Future cash flows are based on forecasts of future sales and operating profit at individual stores in accordance withbusiness plans that have been approved by executives with the appropriate authority. Total cash flows before
discounting and utilization value are determined by using a period of 20 years for stores where operations are
expected to continue, the length of a contract for stores where a contract cannot be renewed, and the remaining timeof operations for stores that are to be closed.
Regarding the effects of the COVID-19 pandemic, although infections of the new variant of the coronavirus are
expected to continue to spread to some extent, the AOKI Group expects that economic activity will slowly recover
during the fiscal year ending in March 2023 to the pre-pandemic level due to the end of limitations on various
activities, reduced store operating hours and other restrictions that were imposed for an extended period. However,this is based on the assumption that customer demand will not return to the pre-pandemic level due to changes inmarket conditions and other factors.
Fashion Business
New stores normally have an operating loss in the first year because of start-up expenses. As a result, the first year is
not included in the monitoring period used to identify indications of the need for impairment. When estimating
future sales and earnings, the assumption is that changes in lifestyles and other factors will continue to affect theFashion Business although the impact of the COVID-19 pandemic will ease. Based on this view, the forecast forexisting store sales in the fiscal year ending in March 2023 and afterward is between 85% and 88% of sales in the

14

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

fiscal year that ended in March 2019, which was before this pandemic started.
Anniversaire and Bridal Business
The ANNIVERSAIRE and Bridal Business has been affected by the pandemic and by changes in wedding styles(increase in family weddings and photo weddings), resulting in a decrease in the number of weddings performed anda decline in the sales per couple. In estimating future earnings forecasts, it is assumed that, as economic activity
returns, the number of previews will increase, the number of weddings will rise to a certain extent, and sales per
couple will also rise. However, the diversification in wedding styles is continuing, and we have assumed that the
number of weddings at existing facilities in the next fiscal year and afterward will be approximately 96% of thenumber in the fiscal year that ended in March 2019, which was not affected by the outbreak of the pandemic, andthat sales per couple will be approximately 77% of sales in the fiscal year that ended in March 2019.
Entertainment Business
Due to the characteristics of this business, the number of customers at a new location normally increases for about
the first three years as awareness of the location increases. Furthermore, there is usually an operating loss in the firstyear because of start-up expenses. As a result, the first year is not included in the impairment monitoring period.
When estimating future sales and earnings, it is assumed that total existing store sales in the fiscal year ending inMarch 2023 and afterward will be between 87% and 92% (91% to 97% for café complex and 77% to 82% forkaraoke) of sales in the fiscal year that ended in March 2019, which was before the pandemic started.
(3) Effect on the balance sheet in the fiscal year ending in March 2023
If actual results of operations differ significantly from the sales and operating profit forecasts for the fiscal year
ending in March 2023 and afterward because of the spread of COVID-19 variants or some other reason, there may
be an effect on the amount of the impairment loss in the fiscal year ending in March 2023.
The book values are as follows for non-current assets of stores where there was no impairment because FY3/22 was
the store’s first year of operation or indications of the need for impairment were identified but assets were not
impaired on the basis of the sales and operating profit forecasts.
(Millions of yen)
FY3/22
FashionBook value of non-current assets of stores exempt
from impairment monitoring due to the first year ofoperation
Book value of non-current assets of stores withindications of the need for impairment but noimpairment

Anniversaire and Bridal

Entertainment

118

-

6,268

2,952

2,302

* 15,686* Café complex: 12,300 million yen; karaoke: 3,385 million yen
2. Recoverability of deferred tax assets(1) Amounts shown on consolidated financial statements for FY3/22(Millions of yen)
FY3/22
Deferred tax assets

8,243(2) Information concerning significant accounting estimates for identifiable items
i. Calculation method for estimates
Each business of the AOKI Group is operated by a consolidated subsidiary. Deferred tax assets are recognized to theextent that these assets can reduce future tax payments. Recognition is based on the schedule for the elimination of
future addition differences at each consolidated subsidiary, the outlook for future taxable income in accordance withthe profitability of the group’s businesses, tax planning, and other factors. The outlook for the taxable income of
consolidated subsidiaries, which reflects expectations concerning future profitability, is based on business plans thathave been approved by executives with the appropriate authority.
15

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

ii. Major assumptions
The business plans prepared by consolidated subsidiaries incorporate forecasts concerning changes in demand, sales
and other items. These estimates use the assumptions that even after economic activities resume, demand for the
AOKI Group’s products and services will not return to the pre-pandemic level. An explanation of these assumptions
is in “1. Impairment losses on non-current assets for stores.” At consolidated subsidiary KAIKATSU FRONTIER,
Inc., the business plan for the fiscal year ending in March 2023 and afterward includes the expected sales andearnings from the 49 locations planned to be opened during FY3/22 or from locations to be opened in the following
fiscal years.
iii. Effect on the balance sheet in the fiscal year ending in March 2023
If actual results of operations differ significantly from the sales and operating profit forecasts for the fiscal year
ending in March 2023 and afterward because of the spread of COVID-19 variants or some other reason, there may
be an effect on the amount of the deferred tax assets and income taxes – deferred in the fiscal year ending in March
2023.
Reclassifications
Consolidated Statement of Income“Loss on store closings,” which was included in “other” under “non-operating expenses” in the previous fiscal year,
is reclassified and presented as a separate line item in FY3/22 since the amount exceeded 10% of total non-operating
expenses. To conform to this change, the consolidated financial statements for the previous fiscal year are
reclassified.
As a result, “other” under “non-operating expenses” of 378 million yen in the previous fiscal year’s consolidated
statement of income is reclassified and divided into “loss on store closings” of 68 million yen and “other” of 309
million yen.
Consolidated Statement of Cash Flows“Gain on sale of non-current assets” and “subsidies for employment adjustment” included in “other” under cash
flows from operating activities in the previous fiscal year, is reclassified and presented as a separate line item in
FY3/22, given the increase in the materiality of impact in the context of the consolidated financial statements. To
conform to this change, the consolidated financial statements for the previous fiscal year are reclassified.
As a result, “other” under cash flows from operating activities of 633 million yen in the previous fiscal year’s
consolidated statement of cash flows is reclassified and divided into “gain on sale of non-current assets” of -1
million yen and “other” of 634 million yen, and “subsidies for employment adjustment” of -691 million yen and“subsidies for employment adjustment received” of 691 million yen are newly presented. The amount of subtotal
was changed from 5,390 million yen to 4,699 million yen.
“Proceeds from sale of property, plant and equipment” included in “other” under cash flows from investing activities
in the previous fiscal year, is reclassified and presented as a separate line item in FY3/22, given the increase in themateriality of impact in the context of the consolidated financial statements. To conform to this change, theconsolidated financial statements for the previous fiscal year are reclassified.
As a result, “other” under cash flows from investing activities of -531 million yen in the previous fiscal year’s
consolidated statement of cash flows is reclassified and divided into “proceeds from sale of property, plant andequipment” of 4 million yen and “other” of -535 million yen.

16

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

Segment and Other Information
Segment information
1. Overview of reportable segment
The Group defines reportable segments as businesses for which financial details can be compiled; the Board of
Directors will review this information on a periodic basis in order to assist with decisions about allocating resourcesand evaluating the performance.
AOKI Holdings, as a pure holding company, supports the businesses of the various companies in the Group. AOKI
Holdings and each business company proposes and executes comprehensive strategies for the products and services
they sell in Japan.
The products and services of AOKI Holdings and the business companies are divided into segments. The four
reportable segments are the Fashion Business, the ANNIVERSAIRE and Bridal Business, the Entertainment
Business, and the Real Estate Leasing Business.
The Fashion Business plans and sells men’s and women’s wear; the ANNIVERSAIRE and Bridal Business operates
wedding halls; the Entertainment Business operates KAIKATSU CLUB, which provides services and spaces for avariety of experiences that match the current needs and preferences of consumers, fitness centers, and karaoke
facilities; and the Real Estate Leasing Business leases real estate of the AOKI Group, including space previously
occupied by stores and other businesses that were closed, within the Group and to other companies.
2. Calculation methods for sales, profits/losses, assets, liabilities and other items for each reportable segment
The accounting treatment methods for reportable segments are generally the same as accounting principles andprocedures used for the preparation of the consolidated financial statements.
Profits for reportable segments are generally operating profit figures. Profits on and transfer amounts ofinter-segment transactions within the Group are based on current market prices.
3. Information related to sales, profits/losses, assets, liabilities and other items for each reportable segment
FY3/21 (Apr. 1, 2020 – Mar. 31, 2021)(Millions of yen)

Adjustment(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)

Reportable segment

FashionNet sales
External sales
Inter-segment
sales and transfers

AnniversaireEntertainment
and Bridal

Real
EstateOthersSubtotal (Note 1)

Leasing

85,372

8,033

48,49915

0-85,387

8,033

48,499Segment profit (loss)

1,499(3,088)(5,190)

Segment assets

99,47934,05367,964

2,578

1,309

5,117

26

-

-

3

1,129

77

14,949Total

Other items
Depreciation
Amortization of
goodwill
Increase inproperty, plant andequipment andintangible assets

Total

1,173 143,078

91

143,169-

143,169

2,703

2,719

-

2,719

(2,719)-3,876 145,797

91

145,889(2,719)143,169(6,101)64(6,036)243(5,793)

1,235 202,732

678-

202,732

34,527237,260

9,031

-

9,031

272

9,303

-

3

-

3

-

3

6

16,162-

16,162369

16,531

Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related
business.
2. The above adjustments include the following items.
(1) The 243 million yen adjustment to segment profit (loss) includes 4,190 million yen in elimination for inter-segment
transactions, and -3,947 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
to reportable segments.
17

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

(2) The 34,527 million yen adjustment to segment assets includes -57,867 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 92,395 million yen that cannot be allocated to any
specific reportable segments. Company-wide assets consist mainly of the Company’s land and building andstructures of the head office that cannot be attributed to reportable segments.
(3) The 369 million yen adjustment to an increase in property, plant and equipment and intangible assets mainly includes
investment in company-wide systems.
3. Segment profit (loss) is adjusted to be consistent with operating loss on the consolidated statement of income.

4. Information related to sales, profits/losses, assets, liabilities and other items for each reportable segment andbreakdown of revenue
FY3/22 (Apr. 1, 2021 – Mar. 31, 2022)(Millions of yen)

Adjustment(Note 2)

Amounts
shown onconsolidated
financialstatements(Note 3)

Reportable segment

FashionNet sales
FashionBridalCafé complex
Karaoke
Fitness
Other

AnniversaireEntertainment
and Bridal

Real
EstateTotal

Leasing

88,642-

7,973-

46,929
6,635
3,425

-

88,642
7,973
46,929
6,635
3,425

-

88,642
7,973
46,929
6,635
3,425

-

88,642
7,973
46,929
6,635
3,425

-

-

50

50

-

50

- 153,606

50

153,656-

153,656

1,259

-

1,259

-

1,259

1,259 154,865

50

154,916-

154,916

3,170

3,177

-

3,177

(3,177)-

4,429 158,042

-

-

-

Revenue fromcontracts withcustomers

88,642

7,973

56,990

Other revenues

-

-

-

External sales
Inter-segment
sales and transfers

88,642

7,973

56,990

0

3

3

1,259

Total

88,642

7,976

56,993

Segment profit (loss)

4,795

(580)

590

Segment assets

98,16730,092

69,408

2,384

942

5,618

46

2,013

61

6,156

2

Other items
Depreciation
Increase inproperty, plant andequipment andintangible assets

OthersSubtotal (Note 1)

50

158,093(3,177)

154,916

5,688

18

5,707

(264)

5,443

1,115 198,784-

198,784

34,224233,008

8,990

-

8,990

308

9,299

8,233

-

8,233

334

8,567

883

Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related
business.
2. The above adjustments include the following items.
(1) The -264 million yen adjustment to segment profit (loss) includes 3,617 million yen in elimination forinter-segment transactions, and -3,881 million yen in company-wide costs that cannot be allocated to any specificreportable segments. Company-wide costs mainly include administration expenses of the Company that cannot be
attributed to reportable segments.
(2) The 34,224 million yen adjustment to segment assets includes -54,503 million yen in elimination of the offsetting
receivables from subsidiaries, and company-wide assets of 88,728 million yen that cannot be allocated to any
specific reportable segments. Company-wide assets consist mainly of the Company’s land and building andstructures of the head office that cannot be attributed to reportable segments.
(3) The 334 million yen adjustment to an increase in property, plant and equipment and intangible assets mainly includes
investment in company-wide systems.
3. Segment profit (loss) is adjusted to be consistent with operating profit on the consolidated statement of income.

5. 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 FY3/22 and changed the accounting method for revenue recognition.
Accordingly, the method for calculating segment profit or loss has been changed as well.

18

AOKI Holdings Inc. (8214) Fiscal Year Ended March 31, 2022

Compared with the previous method, sales increased 496 million yen and segment profit increased 485 million yen
in the Fashion Business in FY3/22. Sales decreased 3,510 million yen and there was no effect on segment loss in the
ANNIVERSAIRE and Bridal Business. In the Entertainment Business, sales decreased 441 million yen and segment
profit decreased 29 million yen.
Per Share Information(Yen)
FY3/21
FY3/22(Apr. 1, 2020 – Mar. 31, 2021)(Apr. 1, 2021 – Mar. 31, 2022)
Net assets per share
1,479.87
1,496.80
Net income (loss) per share(140.77)
30.21
Notes: 1. In FY3/21, diluted net income per share is not presented since the Company posted net loss, and has no potential stockwith dilutive effects. In FY3/22, diluted net income per share is not presented since the Company has no potential stockwith dilutive effects.
2. The following is a reconciliation of net income (loss) per share
Item

FY3/21(Apr. 1, 2020 – Mar. 31, 2021)

Net income per share
Profit (loss) attributable to owners of parent
Profit not attributable to common shareholders
Profit (loss) attributable to owners of parent
applicable to common shares
Average number of common shares outstanding
during the period (Thousand shares)

Summary of potential stock not included in thecalculation of diluted net income per share since
there was no dilutive effect(Millions of yen)
FY3/22(Apr. 1, 2021 – Mar. 31, 2022)(11,931)
-

2,563
-

(11,931)2,563

84,75984,870Share acquisition rights issued
pursuant to the Board of Directors’
resolution on June 27, 2019
Share Acquisition Rights No. 6
Number of stock acquisitionrights: 10,465

Share acquisition rights issued
pursuant to the Board of Directors’
resolution on June 27, 2019
Share Acquisition Rights No. 6
Number of stock acquisitionrights: 10,055

3. The following is a reconciliation of net assets per share
Item

FY3/21(As of Mar. 31, 2021)

Total net assets
Deduction on total net assets[of which share acquisition rights]
Net assets applicable to common shares
Number of common shares used in calculation of
net assets per share (Thousand shares)(Millions of yen)
FY3/22(As of Mar. 31, 2022)

125,850363[363]
125,487

127,641559[559]
127,082

84,79684,902

4. As described in Changes in Accounting Policies, the Company has applied the Accounting Standard for Revenue
Recognition, etc. As a result, net assets per share decreased 6.93 yen and net income per share increased 3.55 yen in
FY3/22.

Subsequent Events
No reportable information.
4. Other
Changes in Directors
Please see “Notice of Changes of Directors and Representative Directors” released today.
* 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.

19