November 8, 2018

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending March 31, 2019
(Six Months Ended September 30, 2018)[Japanese GAAP]
Listings: TSE First Section
Company name: AOKI Holdings Inc.
Stock code:
8214
URL: http://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, 2018
Scheduled date of payment of dividend:
December 5, 2018
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 8, 2018 at 14:15 (GMT +9).
(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Six Months Ended September 30, 2018
(April 1, 2018 – September 30, 2018)(1) Consolidated results of operations
Sales

Operating profit

Million yen%
Million yen%
Six months ended Sep. 30, 2018
83,913
(2.1)
1,499
10.2
85,675
3.7
1,359 105.8
Six months ended Sep. 30, 2017
Note: Comprehensive income (million yen) Six months ended Sep. 30, 2018:
Six months ended Sep. 30, 2017:

Six months ended Sep. 30, 2018
Six months ended Sep. 30, 2017

Net income per share
Yen(12.22)
1.87(Percentages represent year-on-year changes)
Profit attributable toOrdinary profit
owners of parent
Million yen%
Million yen%
533 (44.5)(1,056)
959
88.7
163
6.7
(974) (-%)
217 (up 64.9%)

Diluted net income per share
Yen-(2) Consolidated financial position
Total assets
Net assets
Million yen
Million yen
As of Sep. 30, 2018
225,827
143,576
As of Mar. 31, 2018
239,068
146,528
Reference: Shareholders’ equity (million yen)
As of Sep. 30, 2018:
143,496

Equity ratio
%
63.5
61.3
As of Mar. 31, 2018: 146,440

2. Dividends
1Q-endYen

2Q-end
Yen
22.00
29.00

Dividend per share
3Q-endYen-

Year-end
Yen
22.00

Total
Yen

44.00
FY3/18
FY3/1931.00
60.00
FY3/19 (forecasts)
Note: Revisions to the most recently announced dividend forecast: None
Breakdown of 2Q-end dividends for FY3/19: Ordinary dividends: 22.00 yen; Commemorative dividends: 7.00 yen
Breakdown of Year-end dividends for FY3/19 (forecasts): Ordinary dividends: 23.00 yen; Commemorative dividends: 8.00 yen

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2019 (April 1, 2018 – March 31, 2019)
Sales

Operating profit

Ordinary profit(Percentages represent year-on-year changes)
Profit attributable to
Net income per shareowners of parent
Million yen
%
Yen
7,000
(5.1)
80.91

Million yen%
Million yen%
Million yen%
196,280(1.1)
15,0000.9
13,750(1.8)
Full year
Note: Revisions to the most recently announced consolidated forecast: Yes
Please refer to “(3) Explanation of Consolidated Forecast and Other Forward-looking Statements” on page 4 for further
information.

* 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 10 for further information.

(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, 2018:

90,649,504 shares

As of Mar. 31, 2018:

90,649,504 shares

As of Mar. 31, 2018:

4,085,322 shares

Six months ended Sep. 30, 2017:87,018,467 shares

2) Number of shares of treasury stock at the end of the period
As of Sep. 30, 2018:

4,124,002 shares

3) Average number of shares outstanding during the period
Six months ended Sep. 30, 2018:

86,511,757 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 on Thursday, November 22, 2018.
Materials to be distributed at this event will be available on the Company’s website immediately thereafter.

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

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

Changes in Accounting Policies

10

Additional Information

10

Segment and Other Information

11

1

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the Japanese economy was in a moderate recovery phase as the labormarket and personal income continued improving. However, the outlook is still unclear mainly because of uncertainty
about overseas economies mainly caused by U.S.-China trade friction and other issues.
In this environment, the AOKI Group implemented various measures in all business segments as explained below.
Sales decreased 2.1% year-on-year to 83,913 million yen, operating profit increased 10.2% to 1,499 million yen,ordinary profit decreased 44.5% to 533 million yen mainly due to expenses for events to celebrate AOKI’s 60th
anniversary and an increase in loss on disposal of fixed assets for the replacement of computers. Loss attributable toowners of parent was 1,056 million yen compared with profit attributable to owners of parent of 163 million yen in
the same period of the previous fiscal year. An impairment loss increased mainly due to store relocations andclosures, and conversion of store formats.
Operating results by segment are as follows.
Fashion Business
AOKI stepped up activities involving its Rakudo Series of suits, jackets and trousers that are easy to wash andfacilitate easy movement, characteristics that make this apparel ideal for Cool Biz. In the women’s apparel category,
AOKI further enhanced the ease of washing, wrinkle resistance and stretchability of the Hatarakufuku line ofworking clothes, making these clothes perfect for hot summer days. In addition, there were more new ideas for theSummer Formal line of formal apparel that features fabrics made in Japan for high quality as well as an outstanding
feeling of coolness and comfort. During the first half, three stores were closed including locations closed forconversion into Size MAX stores. As a result, there were 571 stores at the end of the second quarter compared with
574 stores at the end of the previous fiscal year.
ORIHICA started selling Spot Fit Running brand shoes with a sense of lightness and ease of walking that is normallyfound only in sneakers. This company also added more styles to its selection of coordinated items created for theincreasingly diverse range of outings and events that require formal wear. Two new stores were opened, and threewere closed to improve efficiency during the first half. As a result, there were 136 stores at the end of the second
quarter compared with 137 stores at the end of the previous fiscal year.
Overall, existing store sales were negatively affected by a shift in business apparel styles and by unfavorable
weather. As a result, sales in this segment decreased 3.6% to 44,644 million yen and there was an operating loss of
1,581 million yen compared with a loss of 1,057 million yen in the same period of the previous fiscal year.
Anniversaire and Bridal Business
ANNIVERSAIRE INC. operates guesthouse-style wedding and reception facilities. This company increased
measures to attract customers by conducting marketing and public relations activities that clearly communicated thestrengths and distinctive concept of each location. Social networking services were also used for these activities.
Two wedding and reception locations were remodeled to reflect the increasing diversity of needs and other trends inJapan’s wedding market. Despite these actions, the number of weddings decreased mainly because of market
conditions for the bridal business in Japan.
Sales decreased 5.2% to 12,497 million yen and operating profit decreased 31.5% to 649 million yen.
Karaoke Facility Operations BusinessIn the karaoke business of VALIC Co., Ltd., there were many activities to make existing locations more appealing.
This included marketing campaigns that used tie-ups with popular characters, promotions for the discounted morning
rates and more summer menu items. During the first half, 11 karaoke facilities were closed including those closed forconversion into café complexes to improve efficiency. As a result, there were 161 karaoke facilities at the end of thesecond quarter compared with 172 at the end of the previous fiscal year.

2

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

Sales decreased 5.9% to 8,411 million yen and operating profit was 192 million yen compared with an operating lossof 26 million yen in the same period of the previous fiscal year due to reduced cost of sales and selling, general andadministrative expenses.
Café Complex Operations BusinessIn the café complex business of VALID Co., Ltd., there was a Hiyashimen (cold ramen) Fair and more joint
marketing campaigns with social networking services. Another highlight was the installation of personal computerswith very high performance. To reinvigorate existing locations, 13 cafés were remodeled by adding open seatingareas, karaoke and other amenities. VALIC opened seven locations including karaoke facilities converted into café
complexes and closed seven locations to improve efficiency during the first half. As a result, there were 359 café
complexes at the end of the second quarter compared with 359 at the end of the previous fiscal year.
Sales increased 6.4% to 18,377 million yen due to increase in existing-store sales, and operating profit increased
59.0% to 1,747 million yen.
(2) Explanation of Financial Position
1) Balance sheet position
Starting with the beginning of the first quarter of the current fiscal year, AOKI Holdings is applying “Partial
Amendments to Accounting Standard for Tax Effect Accounting” (Accounting Standards Board of Japan (ASBJ)
Statement No. 28, February 16, 2018). Prior-year figures have been adjusted retroactively to conform with thisaccounting standard in order to facilitate comparisons and analysis.
AssetsTotal assets at the end of the second quarter under review decreased 13,240 million yen from the end of the previous
fiscal year to 225,827 million yen due to seasonal factors.
Current assets decreased 13,159 million yen from the end of the previous fiscal year. There were decreases of 7,429
million yen in accounts receivable-trade due to seasonal factors, and 6,395 million yen in cash in hand and in banks
due to the payment of income taxes among other reasons. Fixed assets decreased 81 million yen. Tangible andintangible fixed assets decreased 1,004 million yen mainly due to depreciation and amortization. There was anincrease of 956 million yen in other under deferred tax assets (investments and other assets).
Liabilities
Current liabilities decreased 7,981 million yen from the end of the previous fiscal year. There were decreases of
5,328 million yen in accounts payable-trade due to seasonal factors and 2,178 million yen in accrued income taxes
due to the payment of income taxes among other reasons. Long-term liabilities decreased 2,307 million yen mainly
due to a decrease of 1,325 million yen in long-term debt for the scheduled repayment and other reasons.
Net assets
Net assets decreased 2,952 million yen from the end of the previous fiscal year. There was a decrease of 2,961
million yen in retained earnings due to a loss attributable to owners of parent and dividend from surplus, and anincrease of 77 million yen in treasury stock due to stock repurchases.
2) Cash flow position
Cash and cash equivalents (hereafter “net cash”) at the end of the second quarter under review decreased 6,395
million yen over the end of the previous fiscal year to 25,780 million yen.
Cash flows from operating activities
Net cash provided by operating activities decreased 5,694 million yen to 203 million yen on a year-on-year basis.

3

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

The principal factors include a decrease of 7,429 million yen in accounts receivable-trade and depreciation andamortization of 4,089 million yen, while there was a decrease of 5,328 million yen in accounts payable-trade,
income taxes paid of 2,942 million yen (the net of income tax payments and refunds), and an increase in inventories
of 1,672 million yen.
Cash flows from investing activities
Net cash used in investing activities decreased 893 million yen to 2,780 million yen on a year-on-year basis. Thiswas mainly due to the payments of 2,699 million yen for the acquisition of tangible fixed assets related to new store
openings, renewals and other factors.
Cash flows from financing activities
Net cash used in financing activities increased 422 million yen to 3,818 million yen on a year-on-year basis. Thiswas mainly due to cash dividends paid of 1,903 million yen, repayments of lease obligations of 1,450 million yen,and scheduled repayment of long-term debt of 325 million yen.
(3) Explanation of Consolidated Forecast and Other Forward-looking Statements
First half operating profit and ordinary profit were somewhat ahead of the fiscal year forecasts but sales and profit
attributable to owners of parent were somewhat below the pace needed to reach these forecasts.
We have reexamined the fiscal year forecast based on first half performance. This reexamination incorporated
business plans and other items as well as a review by each business unit of its plans to open and close stores or otherfacilities. This process resulted in the decision to revise the forecasts for sales and profit attributable to owners ofparent that were announced on May 10, 2018. The fashion business has increased its fiscal year new store plan fromthe initial five to seven stores and the karaoke facility operations and café complex businesses have increased the
new store plan from six to 16 locations. Plans for closing stores and other facilities have also been revised.
Consolidated forecast for the fiscal year ending March 31, 2019 (April 1, 2018 – March 31, 2019)
Sales

Operating profit

Profit attributableto owners of parent

Ordinary profit

Net income per
share(Million yen)

(Million yen)

(Million yen)

(Million yen)

(Yen)

Previous forecast (A)(announced on May 10, 2018)

199,100

15,00013,750

7,400

85.56

Revised forecast (B)

196,280

15,00013,750

7,000

80.91

Change (B - A)

(2,820)

-

-

(400)

Percentage change (%)

(1.4)

-

-

(5.4)

Previous fiscal year
(ended Mar. 31, 2018)

198,417

14,86414,003

7,377

Karaoke Facility
Operations

Café Complex
Operations

84.87

Our business segment forecasts were also revised as follows.
Forecast by business segment for the fiscal year ending March 31, 2019
Anniversaireand Bridal

FashionConsolidated(Million yen)

(Million yen)

(Million yen)

(Million yen)

(Million yen)

117,100

26,32017,46035,440196,280

98.9

96.9

93.4

103.8

98.9

Segment profit

8,750

2,400

950

2,200

15,000YoY change (%)

102.6

85.4

124.2

106.2

100.9

Sales
YoY change (%)

Note: Segment profit is operating profit. The total segment profits differ from consolidated operating profit because of
consolidation adjustments.
* Above forecasts are based on judgments made in accordance with information available to the management at the time thesematerials were prepared, and actual results may differ substantially from these forecasts for a number of reasons.

4

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY3/18(As of Mar. 31, 2018)(Millions of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

AssetsCurrent assets
Cash in hand and in banks

32,17525,780Accounts receivable-trade

11,6594,229

Inventories

26,007

27,680

Other current assets

8,431

7,430

Allowance for doubtful accounts

(35)

(40)

78,23865,079Buildings and structures, net

60,58558,504Land

36,952

36,952Other tangible fixed assets, net

14,131

15,394

Total tangible fixed assets

111,669

110,851

5,796

5,609

Total current assets
Fixed assets
Tangible fixed assets

Intangible fixed assets
Investments and other assets
Guarantee deposits

7,973

7,877

Leasehold deposit

20,61020,663

Other investments and other assets

14,83015,787

Allowance for doubtful accounts

(50)

(40)

Total investments and other assets

43,36444,287

160,829

160,748

239,068

225,827

Accounts payable-trade

19,812

14,483Current portion of long-term debt

2,650

3,650

Accrued income taxes

2,593

415

Accrued bonuses for employees

1,978

1,840

123

43

Other current liabilities

13,592

12,335

Total current liabilities

40,75032,768Long-term debt
Accrued retirement benefits for directors and statutory
auditors
Accrued costs for customer point program

36,47535,150

2,018

-

1,059

850

Net defined benefit liability

1,054

1,094

Asset retirement obligations

6,032

5,939

Other long-term liabilities

5,149

6,447

Total fixed assets
Total assets
Liabilities
Current liabilities

Accrued bonuses for directors and statutory auditors

Long-term liabilities

Total long-term liabilities
Total liabilities

5

51,78949,482

92,53982,251AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

(Millions of yen)
Second quarter of FY3/19(As of Sep. 30, 2018)

FY3/18(As of Mar. 31, 2018)
Net assets
Shareholders’ equity
Common stock

23,282

23,282

Capital surplus

27,833

27,846

Retained earnings

100,299

97,338Treasury stock(5,376)(5,454)

Total shareholders’ equity

146,039

143,013

Unrealized gain on securities

588

637

Remeasurements of defined benefit plans

(187)

(154)

Total accumulated other comprehensive income

401

483

87

80

Accumulated other comprehensive income

Stock acquisition rights
Total net assets
Total liabilities and net assets

6

146,528

143,576

239,068

225,827

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive
IncomeQuarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Millions of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)85,67583,913

Sales
Cost of sales

50,66949,768Gross profit

35,00634,144

Selling, general and administrative expenses

33,64632,645

Operating profit

1,359

1,499

Non-operating profit
Interest income

46

45

Dividend income

39

41

Rental income on real estate

283

276

Other

74

91

Total non-operating profit

444

454

173

155

Non-operating expenses
Interest expenses
Expenses on sub-leased real estate

237

230

Loss on disposal of fixed assets
Expenses for events to celebrate AOKI’s 60th
anniversary
Other

129

316

105

458

197

260

Total non-operating expenses

844

1,420

959

533

Gain on sales of investment securities-

27

Gain on reversal of stock acquisition rights-

7

Total extraordinary gains-

35

Impairment loss

337

1,524

Loss on sales of fixed assets

38-

Loss on liquidation of subsidiaries and associates-

444

Loss on disaster

-

48

376

2,017

Profit (loss) before income taxes

582(1,448)Current income taxes

725

325

Deferred income taxes

(305)

(717)

Ordinary profit
Extraordinary gains

Extraordinary losses

Total extraordinary losses

Total income taxes

419

(391)

Profit (loss)

163(1,056)

Profit (loss) attributable to owners of parent

163(1,056)

7

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Millions of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

163(1,056)

Unrealized gain on securities

2

49

Remeasurements of defined benefit plans, net of tax

52

32

Total other comprehensive income

54

82

217

(974)

217

(974)

-

-

Profit (loss)
Other comprehensive income

Comprehensive income
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, 2019(3) Quarterly Consolidated Statement of Cash FlowsFirst six months of FY3/18(Apr. 1, 2017 – Sep. 30, 2017)(Millions of yen)First six months of FY3/19(Apr. 1, 2018 – Sep. 30, 2018)

Profit (loss) before income taxes

582(1,448)Depreciation and amortization

4,195

4,089

337

1,524

Cash flows from operating activities

Impairment loss
Increase (decrease) in accrued retirement benefits for
directors and statutory auditors
Increase (decrease) in accrued costs for customer point
programIncrease (decrease) in accrued retirement benefits for
employees
Interest and dividend income

49(2,018)

(86)

(208)

132

89

(85)

(86)

Interest expenses

173

155

Loss (gain) on sales of fixed assets

38-

Loss (gain) on sales of investment securities

-

(27)

Loss on liquidation of subsidiaries and associates-

444

Decrease (increase) in accounts receivable-trade

6,404

7,429

Decrease (increase) in inventories(165)(1,672)(4,672)(5,328)

Increase (decrease) in accrued consumption taxes

73(1,228)

Other

590

1,515

Subtotal

7,568

3,228

65

71

Increase (decrease) in accounts payable-trade

Interest and dividend income received
Interests paid

(172)

(154)

(2,459)(3,818)

895

875

5,897

203

Payments for acquisition of tangible fixed assets(3,637)(2,699)Payments for acquisition of intangible fixed assets

(202)

(294)

Payments for leasehold and guarantee deposits

(266)

(481)

Net decrease (increase) in trust beneficiary rights

716

769

Other

(282)

(75)

(3,674)(2,780)

Income taxes paid
Income taxes refund
Net cash provided by (used in) operating activities
Cash flows from investing activities

Net cash used in investing activities
Cash flows from financing activities
Net increase (decrease) in short-term debt

4,000

-

Repayments of long-term debt

(3,825)(325)

Repayments of lease obligations(1,132)(1,450)

(517)

(138)

(1,920)(1,903)

Payments for purchase of treasury stock
Dividends paid
Other

0

-

(3,395)(3,818)0(0)Increase (decrease) in cash and cash equivalents(1,171)(6,395)

Cash and cash equivalents at beginning of period

28,60832,175

Cash and cash equivalents at end of period

27,43625,780Net cash used in financing activities
Effect of exchange rate change on cash and cash equivalents

9

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
No reportable information.
Significant Changes in Shareholders’ Equity
First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
Purchase of treasury stock
AOKI Holdings has purchased 83,000 shares of its treasury stock pursuant to the resolution of the Board of
Directors on January 31, 2018, and sold 45,000 shares for restricted stock compensation for directors pursuant to theresolution of the Board of Directors on June 27, 2018. As a result, treasury stock increased 77 million yen during thefirst six months of FY3/19 to 5,454 million yen at the end of the second quarter of FY3/19.

Changes in Accounting Policies
AOKI Holdings has decided to apply “Practical Solution on Transactions Granting Employees and Others Stock
Acquisition Rights, which Involve Considerations, with Vesting Conditions, etc.” (Accounting Standards Board ofJapan (ASBJ) Practical Issues Task Force (PITF) No. 36, January 12, 2018) from April 1, 2018 and to account fortransactions granting employees and others stock acquisition rights, which involve considerations, with vesting
conditions in accordance with the “Accounting Standard for Stock Options” (ASBJ Statement No. 8, December 27,2005) and related guidance.
However, when applying PITF No. 36, the Company complies with the transitional provisions in Paragraph 10, Item(3) of PITF No. 36 and continues to account for transactions that granted employees and others stock acquisitionrights, which involve considerations, with vesting conditions prior to the date of application of PITF No. 36 inaccordance with the previously adopted accounting procedures.

Additional Information
Application of Partial Amendments to Accounting Standard for Tax Effect Accounting
AOKI Holdings has applied “Partial Amendments to Accounting Standard for Tax Effect Accounting” (ASBJ
Statement No. 28, February 16, 2018) at the beginning of the first quarter of the current fiscal year. Accordingly,
deferred tax assets are reclassified and included in the investments and other assets section.
Termination of Directors’ Retirement Benefits
At the AOKI Holdings shareholders meeting in June 2018, shareholders approved a resolution to make final
retirement payments in conjunction with the termination of the retirement benefit program for directors and statutory
auditors of AOKI Holdings and its consolidated subsidiaries.
As a result, all accrued retirement benefits for directors and statutory auditors were reversed and eliminated. The
planned retirement benefit program termination payments of 1,680 million yen are included in other long-term
liabilities.

10

AOKI Holdings Inc. (8214) Second Quarter of the Fiscal Year Ending March 31, 2019

Segment and Other Information
First six months of FY3/18 (Apr. 1, 2017 – Sep. 30, 2017)
1. Information related to sales and profit/loss for each reportable segment(Millions of yen)
Reportable segment
Café
ComplexOperations

Karaoke
Anniversaire
Facility
and Bridal
Operations

FashionAmounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Total

Sales
External sales
Inter-segment sales
and transfers
Total

46,287

13,177

8,936

17,27385,675-85,675

10

10

2

-

23

(23)

-

46,29813,187

8,939

17,27385,698(23)

85,675

Segment profit (loss)(1,057)
947
(26)
1,099
963
396
1,359
Notes: 1. The 396 million yen adjustment to segment profit (loss) includes 2,126 million yen in elimination for inter-segment
transactions, and -1,730 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 ANNIVERSAIRE and Bridal Business, the Karaoke Facility Operations Business andthe Café Complex Operations Business, impairment losses were recognized for operating stores set to be closed or
rebuilt for which there is little expectation of recovery; impairment losses of 144 million yen, 10 million yen, 104
million yen and 77 million yen were booked respectively in the first six months of FY3/18.
First six months of FY3/19 (Apr. 1, 2018 – Sep. 30, 2018)
1. Information related to sales and profit/loss for each reportable segment
Reportable segment
Karaoke
Café
Anniversaire
FacilityComplexand Bridal
Operations Operations

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

Total

Sales
External sales
Inter-segment sales
and transfers
Total

44,642

12,481

8,411

18,377

83,913-

83,913

1

16

0

-

18

(18)

-

44,644

12,497

8,411

18,377

83,931(18)

83,913

Segment profit (loss)(1,581)
649
192
1,747
1,007
491
1,499
Notes: 1. The 491 million yen adjustment to segment profit (loss) includes 2,201 million yen in elimination for inter-segment
transactions, and -1,710 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 Karaoke Facility Operations Business and the Café Complex Operations Business,
impairment losses were recognized for operating stores and subleasing stores set to be closed, relocated or converted,or expected to remain in the red; impairment losses of 168 million yen, 1,013 million yen, and 342 million yen werebooked respectively in the first six months of FY3/19.
* This financial report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.
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