November 6, 2020

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2021
(Six Months Ended September 30, 2020)[Japanese GAAP]
Listings: TSE First Section
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: https://www.aoki-hd.co.jp/
Representative:
Akihiro Aoki, President
Contact:
Haruo Tamura, Executive Vice President
Tel: +81-45-941-1388
Scheduled date of filing of Quarterly Report:
November 9, 2020
Scheduled date of payment of dividend:
December 2, 2020
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for institutional investors and analysts)
Note: The original disclosure in Japanese was released on November 6, 2020 at 15:00 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2020
(April 1, 2020 – September 30, 2020)(1) Consolidated results of operations(Percentages represent year-on-year changes)
Profit attributable toSales
Operating profit
Ordinary profit
owners of parent
Million yen%
Million yen%
Million yen%
Million yen%
Six months ended Sep. 30, 2020
55,952 (32.4)(11,885)(12,397)(9,661)
Six months ended Sep. 30, 2019
(2.0)
377 (75.8)
(496)
(988)
82,795
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2020:(9,694) (-%)
Six months ended Sep. 30, 2019:(1,176) (-%)
Net income per share
Yen(114.04)(11.51)

Six months ended Sep. 30, 2020
Six months ended Sep. 30, 2019

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Sep. 30, 2020
242,278
127,756
As of Mar. 31, 2020
229,843
139,209
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2020: 127,416

Equity ratio
%
52.6
60.5
As of Mar. 31, 2020: 138,981

2. Dividends
1Q-endYen

2Q-endYen

Dividend per share
3Q-endYen-

Year-end
Yen
23.00

-

13.00

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

Total
Yen
46.00
23.00

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

Operating profit%

Million yen%

Ordinary profit
Million yen

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

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

%

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

* Notes(1) Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
(2) Application of special accounting methods for presenting quarterly consolidated financial statements: None
(3) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others:None2) Changes in accounting policies other than 1) above:None3) Changes in accounting-based estimates:

None4) Restatements:

None(4) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
As of Sep. 30, 2020:

90,649,504 shares

As of Mar. 31, 2020:

90,649,504 shares

As of Mar. 31, 2020:

5,974,058 shares

Six months ended Sep. 30, 2019:85,926,755 shares

2) Number of shares of treasury stock at the end of the period
As of Sep. 30, 2020:

5,852,968 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2020:

84,727,303 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.
Disclosure of the information meeting materials
The Company plans to hold a financial results meeting for institutional investors and analysts by telephone conference on Friday,
November 20, 2020. Materials to be distributed at this event will be available on the Company’s website on the morning of themeeting.

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

Contents of Attachments

1. Qualitative Information on Quarterly Consolidated Financial Performance

Pages
2

(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Forecast and Other Forward-looking Statements

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 Income8(3) Quarterly Consolidated Statement of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Additional Information

10

Segment Information

10

1

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the COVID-19 pandemic continued to severely impact the Japanese
economy, holding down corporate earnings and consumer spending even after the end of the state of emergency. The
outlook for the economy remains uncertain because there are still no signs of when this crisis will end and theeconomy will start recovering.
The AOKI Group took the actions explained in the business segment section to prevent the COVID-19 infection
during the first half, but this crisis still had a big negative impact on sales and earnings. Sales decreased 32.4%
year-on-year to 55,952 million yen, and operating loss was 11,885 million yen compared with a profit of 377 million
yen one year earlier. There was an ordinary loss of 12,397 million yen compared with a loss of 496 million yen one
year earlier. Loss attributable to owners of parent was 9,661 million yen compared with a loss of 988 million yen
one year earlier.
Operating results by segment are as follows.
Fashion Business
The New Biz Style line of apparel includes mix-and-match apparel sets and jackets, business polo shirts and otherclothing for remote work and other new styles of doing jobs. The Fashion Business also sells easy-to-mix-and-matchsets of apparel for working women. In addition, we started selling a series of antibacterial and washable masks thatwere an immediate hit with customers. As the need for online shopping grows, we further increased links between
e-commerce and physical stores. We expanded the STAFF START service that gives customers styling proposals
online and ORIHICA started a service to allow customers to pick up at stores merchandise purchased online. To
make online shopping even more convenient, we started a multi-language service. Three ORIHICA stores wereopened and five AOKI stores and two ORIHICA stores were closed following examinations of the profitability ofstores. As a result, there were 634 stores at the end of the first half compared with 638 at the end of the previous
fiscal year.
Although there were many activities during the fiscal year’s first half in this business, performance was affected by
the growth of teleworking, the prolonged period of restrictions on outings from home, and the downturn in weddings,
funerals and other ceremonies. The decline in sales of business suits, formal wear and other heavy clothing wasparticularly severe. As a result, sales in this segment decreased 26.1% to 31,480 million yen and there was an
operating loss of 4,797 million yen compared with a 1,377 million yen loss one year earlier.
Anniversaire and Bridal BusinessThis business restarted wedding and reception operations on June 1 while strictly following guidelines forpreventing the spread of COVID-19. Weddings incorporate safety measures that match today’s new life style. We
also started new types of weddings such as online weddings and weddings where guests are served meals in
ceremonial multi-tier boxes.
Despite numerous measures to attract customers, the performance of this business was down significantly as thenumber of couples married fell sharply due to wedding and reception postponements because of the prolonged
COVID-19 crisis. As a result, sales fell 85.1% to 1,679 million yen and there was an operating loss of 2,640 million
yen compared with a 34 million yen loss one year earlier.
Entertainment BusinessThis business has taken many steps to protect customers from COVID-19, such as by using highly effective
ventilation systems, using configurations with adequate distance adjacent seats, and installing automatic
entrance/exit control systems. In addition, KAIKATSU CLUB café complexes provide many services for customers
using a café for teleworking, such as web camera rentals and the introduction of online meeting apps. These services
increase the appeal of cafés for use as a type of shared workspace. During the first half, we opened 49 KAIKATSU
CLUBs and 17 FiT24 locations, all of which were approved prior to the COVID-19 outbreak. Eight locations were2

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

closed to improve the efficiency of this business. As a result, there were 660 locations in this segment at the end of
the first half compared with 602 at the end of the previous fiscal year.
Despite these activities, the performance of this business was affected by temporary closings, reduced operating
hours and the need to stay home as much as possible due to the state of emergency and by higher expenses becauseof the addition of new locations. Sales decreased 21.8% to 22,156 million yen and operating loss was 4,984 million
yen compared with a 1,427 million yen profit one year earlier.
Real Estate Leasing Business
Segment sales increased 11.8% to 1,930 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 15.6% to 372 million yen.
(2) Explanation of Financial Position
1) Balance sheet position
AssetsTotal assets at the end of the second quarter increased 12,434 million yen from the end of the previous fiscal year to242,278 million yen mainly due to new store openings and other factors.
Current assets increased 1,761 million yen from the end of the previous fiscal year. There were decreases of 4,359
million yen in accounts receivable-trade due to seasonal factors and 1,528 million yen in inventories due to adecrease in procurement and other factors. There was an increase of 9,937 million yen in cash in hand and in banks
due to proceeds from borrowings. Fixed assets increased 10,673 million yen from the end of the previous fiscal year
as there were increases of 5,720 million yen in tangible fixed assets due to new store openings and other factors and4,983 million yen in other under deferred tax assets (investments and other assets).
Liabilities
Current liabilities increased 16,152 million yen from the end of the previous fiscal year. There were a decrease of
5,268 million yen in accounts payable-trade mainly due to seasonal factors and proceeds from short-term borrowingsof 16,000 million yen and an increase of 4,922 million yen in electronically recorded obligations-operating.
Long-term liabilities increased 7,735 million yen. There was an increase of long-term borrowings of 6,916 million
yen mainly due to a 11,000 million yen of new loan and scheduled repayment.
Net assets
Net assets decreased 11,453 million yen from the end of the previous fiscal year. There was a decrease of 11,609
million yen in retained earnings due to a loss attributable to owners of parent and dividend from surplus.
2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter increased 9,937 million yen overthe end of the previous fiscal year to 33,781 million yen.
Cash flows from operating activities
Net cash used in operating activities increased 12,872 million yen to 8,719 million yen on a year-on-year basis. The
principal factors were depreciation and amortization of 4,381 million yen, a decrease in trade receivables of 4,359
million yen and a decrease in inventories of 1,528 million yen, while there were loss before income taxes of 14,429
million yen and a decrease in trade payables of 5,268 million yen.
Cash flows from investing activities
Net cash used in investing activities decreased 3,156 million yen to 2,839 million yen on a year-on-year basis. Thiswas mainly due to payments for the acquisition of tangible fixed assets of 2,641 million yen for new store openings,

3

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

renewals and other factors.
Cash flows from financing activities
Net cash provided by financing activities increased 19,913 million yen to 21,496 million yen on a year-on-year basis.
This was mainly due to proceeds from short-term borrowings of 16,000 million yen and long-term borrowings of
11,000 million yen, while there were scheduled repayment of long-term borrowings of 2,409 million yen, cash
dividends paid of 1,945 million yen and repayments of lease obligations of 1,148 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
There is no change in the fiscal year forecast announced on September 23, 2020 that incorporates the effects of
COVID-19. During the current fiscal year, our plan is to open three stores in the Fashion Business, all of which are
now operating, and 68 locations in the Entertainment Business, all but two of which are now operating.
Business segment forecasts are as follows.
Business segment forecasts for the fiscal year ending March 31, 2021
Entertainment(Million yen)

Anniversaireand Bridal(Million yen)

Fashion
Sales(Million yen)

Real Estate
Leasing(Million yen)

Consolidated(Million yen)

87,6009,300

53,1503,920

151,300

YoY change (%)

89.1

41.8

91.0

108.2

84.0

Segment profit (loss)

800(3,000)

(500)

750

(2,000)YoY change (%)

27.7

-

-

112.1

-

Note: Segment profit is operating profit (loss). Total segment profit differs from consolidated operating profit
because of other and consolidation adjustments.
* These forecasts are based on judgments made in accordance with information available to the management at thetime these materials were prepared. Actual results may differ substantially from these forecasts for a number ofreasons.

4

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

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/20(As of Mar. 31, 2020)(Millions of yen)
Second quarter of FY3/21(As of Sep. 30, 2020)

AssetsCurrent assets
Cash in hand and in banks

23,84333,781

Accounts receivable-trade

8,455

4,096

Inventories

24,181

22,653

Other current assets

8,851

6,565

Allowance for doubtful accounts

(36)

(38)

65,29767,058

Buildings and structures, net

66,501

71,166

Land

36,13836,138Other, net

14,893

15,948

Total tangible fixed assets

117,533

123,254

5,631

5,518

Total current assets
Fixed assets
Tangible fixed assets

Intangible assets
Investments and other assets
Guarantee deposits

7,740

7,572

Leasehold deposit

20,653

20,903

Other investments and other assets

13,02818,011

Allowance for doubtful accounts

(40)

(40)

Total investments and other assets

41,382

46,447

Total fixed assets
Total assets

5

164,546

175,220

229,843

242,278

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

(Millions of yen)
Second quarter of FY3/21(As of Sep. 30, 2020)

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

14,563

9,295

-

4,922

-

16,000Current portion of long-term borrowings
Accrued income taxes

3,493

5,168

407

421

Accrued bonuses for employees

1,357

934

Short-term borrowings

Accrued bonuses for directors (and other officers)

39

42

Other current liabilities

12,727

11,956

Total current liabilities

32,587

48,74040,332

47,248Long-term liabilities
Long-term borrowings

695

558

Retirement benefit liability

1,276

1,313

Asset retirement obligations

7,591

7,725

Other long-term liabilities

8,150

8,936

Total long-term liabilities

58,04665,781

90,634

114,522

Share capital

23,282

23,282

Capital surplus

27,82327,747Retained earnings

96,29884,689Treasury stock(7,592)(7,438)

Total shareholders’ equity

139,812

128,280

Unrealized gain on securities

(726)

(791)

Remeasurements of defined benefit plans

(105)

(72)

Total accumulated other comprehensive income

(831)

(863)

Accrued costs for customer point program

Total liabilities
Net assets
Shareholders’ equity

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

6

228

339

139,209

127,756

229,843

242,278

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

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Six-month Period)(Millions of yen)First six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)

First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)
Sales

82,79555,952

Cost of sales

50,56342,187Gross profit

32,231

13,765

Selling, general and administrative expenses

31,85425,651377(11,885)

Interest income

39

32

Dividend income

44

16

Operating profit (loss)
Non-operating profit

Penalty income

-

45

Other

88

78

Total non-operating profit

173

172

Interest expenses

138

173

Loss on disposal of fixed assets

551

317

Other

356

193

Non-operating expenses

Total non-operating expenses
Ordinary loss

1,047

685

(496)

(12,397)

Extraordinary gains
Gain on sale of fixed assets

55-

Gain on sales of investment securities

145

4

Gain on reversal of stock acquisition rights

4-

Subsidies for employment adjustment

-

563

205

568

Impairment loss

789

539

Loss on valuation of investment securities

72

70

Loss due to temporary closure

-

1,989

Total extraordinary gains
Extraordinary losses

Total extraordinary losses

861

2,599

(1,153)(14,429)

Current income taxes

323

268

Deferred income taxes(487)(5,035)

Total income taxes(164)(4,767)

Loss

(988)

(9,661)

Loss attributable to owners of parent(988)(9,661)

Loss before income taxes

7

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

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)(Millions of yen)First six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)(988)(9,661)

(215)

(64)

27

32

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

(188)

(32)

(1,176)(9,694)(1,176)(9,694)--Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

8

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

(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/20(Apr. 1, 2019 – Sep. 30, 2019)(Millions of yen)First six months of FY3/21(Apr. 1, 2020 – Sep. 30, 2020)

Loss before income taxes(1,153)(14,429)

Depreciation and amortization

4,246

4,381

Cash flows from operating activities

Impairment loss

789

539

-

1,989

(138)

(136)

Loss due to temporary closure
Increase (decrease) in accrued costs for customer point
programIncrease (decrease) in retirement benefit liability

81

85Interest and dividend income

(84)

(49)

Interest expenses

138

173

Loss (gain) on sales of investment securities

(145)

(4)

Decrease (increase) in trade receivables

7,054

4,359

Decrease (increase) in inventories

(280)

1,528

Increase (decrease) in trade payables(6,000)(5,268)

Increase (decrease) in accrued consumption taxes

(676)

(664)

Other

478

(749)

Subtotal

4,308(8,244)81

39

Interest and dividend income received
Interests paid

(137)

(164)

Income taxes paid

(1,564)(616)

Income taxes refund

1,465

1,933

-

(1,667)

4,153(8,719)Payments for acquisition of tangible fixed assets(5,900)(2,641)

Payments for loss due to temporary closure
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments for acquisition of intangible fixed assets

(672)

(321)

Payments for leasehold and guarantee deposits

(880)

(709)

Proceeds from sales of investment securities

836

69

Net decrease (increase) in trust beneficiary rights

787

1,050

Other

(167)

(287)

(5,996)(2,839)Net increase (decrease) in short-term borrowings

5,000

16,000

Proceeds from long-term borrowings

2,000

11,000

Repayments of long-term borrowings(1,325)(2,409)

Repayments of lease obligations(1,029)(1,148)

(194)

(0)

Net cash used in investing activities
Cash flows from financing activities

Payments for purchase of treasury stock
Dividends paid

(2,662)(1,945)

Other

(205)

-

Net cash provided by (used in) financing activities

1,583

21,496

0

0

(259)

9,937

Effect of exchange rate change on cash and cash equivalents
Increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period

26,55823,843

Cash and cash equivalents at end of period

26,29833,781

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

(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/21 (Apr. 1, 2020 – Sep. 30, 2020)
No reportable information.
Additional Information
Accounting-based Estimates
At present, the COVID-19 pandemic is continuing to have a significant negative impact on the business operationsof the AOKI Group.
The effects of COVID-19 are likely to continue to increase somewhat in all regions of Japan where the businesses of
the AOKI Group operate stores and other facilities. The sales and operating profit of these stores and other facilities
may decline due to restrictions on their operations, lower demand and other reasons until the pandemic winds down
and economic activity in Japan recovers. We expect sales in these businesses in the fiscal year ending in March 2021
to decline from the previous fiscal year due to the effects of the COVID-19. Sales are likely to be down 5%-25% in
the Fashion Business, approximately 40%-60% in the ANNIVERSAIRE and Bridal Business, and about 35% in theEntertainment Business.
There is no significant change in the AOKI Group’s policy for assumptions, including how much the COVID-19
pandemic will continue to spread, when this crisis will end and other upcoming events. Our best estimate is that arecovery of economic activity in Japan to pre-pandemic levels may not be completed until March 2022 at the latest.
We will use the outlook for the fiscal year ending in March 2021 as the basis for decisions about the need for the
impairment of fixed assets. For some accounting estimates, including estimates for the recognition anddetermination of fixed asset impairment charges and the recoverability of deferred tax assets, amounts posted on thefinancial statements are calculated by using the expected value method.
Segment Information
First six months of FY3/20 (Apr. 1, 2019 – Sep. 30, 2019)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
Anniversaire
Real EstateEntertainment
and Bridal
Leasing

Fashion

Total(Millions of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Sales
External sales
Inter-segment sales
and transfers
Total

42,578

11,27828,327611

82,795-82,795

1

3

0

1,115

1,120

(1,120)-42,58011,282

28,327

1,727

83,916(1,120)82,795

Segment profit (loss)(1,377)
(34)
1,427
322
337
40
377
Notes: 1. The 40 million yen adjustment to segment profit (loss) includes 2,105 million yen in elimination for inter-segment
transactions, and -2,065 million yen in company-wide costs that cannot be allocated to any specific reportablesegments. Company-wide costs mainly include administration expenses of the Company that cannot be attributed toreportable segments.
2. Segment profit (loss) is adjusted with operating profit on the quarterly consolidated statement of income.

2. Information related to impairment losses on fixed assets, or goodwill, etc. for each reportable segment
Material impairment losses related to fixed assets
In the Fashion Business, the Entertainment Business and the Real Estate Leasing Business, impairment losses wererecognized for operating stores set to be closed or converted for which there is little expectation of recovery and
10

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

subleasing stores expected to remain in the red; impairment losses of 278 million yen, 404 million yen and 106
million yen were booked respectively in the first six months of FY3/20.
First six months of FY3/21 (Apr. 1, 2020 – Sep. 30, 2020)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
OthersSubtotal (Note 1)(Millions of yen)Amounts
shown onquarterly
Adjustment
consolidated(Note 2)statement ofincome(Note 3)

FashionAnniversaireand Bridal

Entertainment

RealEstateLeasing

31,4801,678

22,156575

55,891

61

55,952-

55,952

0

0

-

1,355

1,355

-

1,355

(1,355)-31,4801,679

22,156

1,930

57,247

61

57,308(1,355)55,952

Total

Sales
External sales
Inter-segment sales
and transfers
Total

Segment profit (loss) (4,797)(2,640)(4,984)372 (12,049)
46 (12,002)
116(11,885)
Notes: 1. The “others” classification refers to businesses not included in reportable segments such as advertising-related business.
2. The 116 million yen adjustment to segment profit (loss) includes 2,164 million yen in elimination for inter-segment
transactions, and -2,047 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 and the Entertainment Business, impairment losses were recognized for operating stores set
to be closed or converted for which there is little expectation of recovery and expected to remain in the red;
impairment losses of 117 million yen and 422 million yen were booked respectively in the first six months of
FY3/21.

* 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