AOKI : Summary of Consolidated Financial Results for the First Quarter of the Fiscal Year Ending March 31, 2024

Company name: AOKI Holdings Inc.

Stock code: 8214

Representative: Haruo Tamura, President

Contact: Satoshi Eguchi, General Manager of IR/PR Office Scheduled date of filing of Quarterly Report:

Scheduled date of payment of dividend:

Preparation of supplementary materials for quarterly financial results:

Holding of quarterly financial results meeting:

August 9, 2023

Summary of Consolidated Financial Results

for the First Quarter of the Fiscal Year Ending March 31, 2024

(Three Months Ended June 30, 2023)

[Japanese GAAP]

Listings: Tokyo Stock Exchange

URL: https://www.aoki-hd.co.jp/

Tel: [phone] August 10, 2023

-

Yes

None

Note: The original disclosure in Japanese was released on August 9, 2023 at 15:30 (GMT +9).

(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2023 (April 1, 2023 - June 30, 2023)

(1) Consolidated results of operations				(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit	Profit attributable to
		owners of parent
Three months ended Jun. 30, 2023	Million yen		%	Million yen	%	Million yen	%	Million yen	%
41,549		5.9	2,278	47.3	2,187	57.3	1,439	14.7
Three months ended Jun. 30, 2022	39,227		19.2	1,547	-	1,390	-	1,255	-

Note: Comprehensive income (million yen)	Three months ended Jun. 30, 2023:	1,604	(up 9.5%)
		Three months ended Jun. 30, 2022:	1,465	(-%)
	Net income per	Diluted net income
		share	per share
Three months ended Jun. 30, 2023		Yen	Yen
	17.06		-
Three months ended Jun. 30, 2022		14.79		-

(2) Consolidated financial position

	Total assets	Net assets	Equity ratio
	Million yen	Million yen	%
As of Jun. 30, 2023		225,695	131,875	58.3
As of Mar. 31, 2023		233,416	132,251	56.5
Reference: Shareholders' equity (million yen)	As of Jun. 30, 2023: 131,628	As of Mar. 31, 2023: 131,969

2. Dividends

				Dividend per share
	1Q-end		2Q-end	3Q-end
	Yen		Yen	Yen
FY3/23		-	7.00	-
FY3/24		-
FY3/24 (forecasts)			13.00	-

Note: Revisions to the most recently announced dividend forecast: None

Year-end

Yen

13.00

14.00

Total

Yen

20.00

27.00

3. Consolidated Forecast for the Fiscal Year Ending March 31, 2024 (April 1, 2023 - March 31, 2024)

								(Percentages represent year-on-year changes)
	Net sales		Operating profit	Ordinary profit		Profit attributable to	Net income per
			owners of parent	share
Full year	Million yen		%	Million yen	%	Million yen	%		Million yen	%	Yen
180,500		2.5	10,800	5.5	10,300	22.2		5,800	3.0	69.01

Note: Revisions to the most recently announced consolidated forecast: None

* Notes

1. Changes in consolidated subsidiaries during the period (changes in scope of consolidation): None
2. Application of special accounting methods for presenting quarterly consolidated financial statements: None
3. Changes in accounting policies and accounting-based estimates, and restatements

1)	Changes in accounting policies due to revisions in accounting standards, others:	None
2)	Changes in accounting policies other than 1) above:	None
3)	Changes in accounting-based estimates:	None
4)	Restatements:	None

(4) Number of shares outstanding (common shares)

1)	Number of shares outstanding (including treasury shares) at the end of the period
	As of Jun. 30, 2023:	86,649,504 shares	As of Mar. 31, 2023:	87,649,504 shares
2)	Number of treasury shares at the end of the period
	As of Jun. 30, 2023:	2,760,169 shares	As of Mar. 31, 2023:	2,746,866 shares
3) Average number of shares outstanding during the period
	Three months ended Jun. 30, 2023:	84,399,275 shares	Three months ended Jun. 30, 2022:	84,902,947 shares

Note 1: The current quarterly summary report is not subject to quarterly review by certified public accountants or auditing firms.

Note 2: Cautionary statement with respect to forecasts and other matters Cautionary statement with respect to forward-looking statements

Forecasts and forward-looking statements in these materials are based on assumptions judged to be valid and information available to the Company at the time the materials were created. These materials are not promises by the Company regarding future performance. Actual performance may differ significantly from these forecasts for a number of reasons. Please refer to "(3) Explanation of Consolidated Forecast and Other Forward-looking Statements" on page 3 of the attachments regarding preconditions or other related matters for the forecast shown above.

Supplementary materials for quarterly financial results

Supplementary materials for quarterly financial results will be available on the Company's website immediately after the earnings announcement on Wednesday, August 9, 2023.

	AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2024
Contents of Attachments
		Pages
1. Qualitative Information on Quarterly Consolidated Financial Performance	2
(1)	Explanation of Results of Operations	2
(2)	Explanation of Financial Position	3
(3)	Explanation of Consolidated Forecast and Other Forward-looking Statements	3
2. Quarterly Consolidated Financial Statements and Notes	4
(1)	Quarterly Consolidated Balance Sheet	4
(2)	Quarterly Consolidated Statement of Income and
	Quarterly Consolidated Statement of Comprehensive Income	6
	Quarterly Consolidated Statement of Income	6
	Quarterly Consolidated Statement of Comprehensive Income	7
(3)	Notes to Quarterly Consolidated Financial Statements	8
	Going Concern Assumption	8
	Significant Changes in Shareholders' Equity	8
	Segment Information	8

1

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2024

1. Qualitative Information on Quarterly Consolidated Financial Performance

(1) Explanation of Results of Operations

In the first quarter of the current fiscal year, the Japanese economy recovered slowly mainly due to further progress with the normalization of economic activities. However, the outlook for the economy remains uncertain because of the high cost of energy and raw materials caused by global events causing uncertainty, the yen's depreciation and other reasons.

Due to the measures of the AOKI Holdings Group explained in the following sections, both sales and earnings increased in the first quarter. Net sales increased 5.9% from one year earlier to 41,549 million yen, operating profit increased 47.3% to 2,278 million yen, ordinary profit increased 57.3% to 2,187 million yen, and profit attributable to owners of parent increased 14.7% to 1,439 million yen.

Business segment performance was as follows.

Fashion Business

For comfort during hot summer days, the lineup of apparel in the Air Cool series, which uses a material developed jointly with an academic sector partner, was expanded. In addition, there were measures to increase the lineup of merchandise in the casual apparel category. For example, the Pajama Suits series, which continues to post strong sales, added a pajama blazer and there were other activities. Another highlight of the first quarter was the start of operations OKI Rental Service at all AOKI stores, which rents morning coats and tuxedos in an easy to use format. In the women's fashion category, sales started for 360° Washable Pretty Suits (Air Cool Suits), which use the same fabric as in the popular Air Cool Suits for men. One AOKI store was opened, and one AOKI store and two ORIHICA stores were closed to improve the efficiency of store operations. As a result, the number of stores decreased from 596 at the end of the previous fiscal year to 594 at the end of the first quarter.

These activities and other measures generated strong sales of heavy clothing as people began wearing suits again and of Cool Biz apparel. As a result, sales increased 0.6% year on year to 21,106 million yen and operating profit increased 8.7% year on year to 1,279 million yen.

Anniversaire and Bridal Business

Activities during the first quarter included a Cathedral Wedding Fair with Wedding Gown Trial held during Golden Week, enabling visitors to have a simulated experience of a memorable ANNIVERSAIRE wedding, and the continuation of marketing activities using the internet and social networking services for efficiently attracting customers In addition, ANNIVERSAIRE Omotesando, which is celebrating its 25th anniversary, is preparing for a reopening in September 2023 as a facility offering outstanding experiences, products, feelings, and services related to anniversaries.

Despite these initiatives and cost-cutting measures, the number of weddings decreased mainly due to the closing of ANNIVERSAIRE Omotesando. As a result, sales decreased 5.4% to 2,042 million yen and there was an operating loss of 209 million yen compared with a profit of 39 million yen one year earlier.

Entertainment Business

KAIKATSU CLUB café complexes provide services for businesspeople and students, such as partnership with The Tokyo Chamber of Commerce and Industry concerning its certification tests and joining the Nikkei's Office Pass system, and enhanced its food and beverage menu by partnering with famous restaurant chain stores and manufacturers.

At COTE D'AZUR karaoke facilities, there were various campaigns with partners, including collaborations with Gelato Licca-chan and BEYBLADE X. FiT24, which operates 24-hourself-service fitness gyms, continued to increase the number of indoor golf facilities. During the first quarter, FiT24 opened 2 gyms while 1 KAIKATSU CLUB café and 1 COTE D'AZUR karaoke facility were closed due to measures to improve efficiency. As a result, including the 102 JIYU KUKAN café complexes and other locations of RUNSYSTEM (including 56 franchised stores), the number of locations in this business decreased from 810 at the end of the previous fiscal year to 806 at the end of the first quarter.

Segment sales and earnings increased because of these measures and other factors. Sales in this segment increased

2

AOKI Holdings Inc. (8214) First Quarter of the Fiscal Year Ending March 31, 2024

14.5% to 18,043 million yen and operating profit increased 292.9% to 1,199 million yen.

Real Estate Leasing Business

Segment sales increased 8.2% to 1,272 million yen and operating profit increased 9.7% to 221 million yen mainly because of the leasing of idle space of the AOKI Group's stores.

1. Explanation of Financial Position Balance sheet position
   Assets

Total assets at the end of the first quarter decreased 7,720 million yen from the end of the previous fiscal year to 225,695 million yen primarily because of a decrease in accounts receivable-trade.

Current assets decreased 9,583 million yen mainly due to a decrease of 5,592 million yen in accounts receivable-trade caused by seasonal and other factors. Non-current assets increased 1,862 million yen as property, plant and equipment increased 2,143 million yen.

Liabilities

Current liabilities decreased 6,673 million yen from the end of the previous fiscal year. There were decreases of 3,135 million yen in accounts payable-trade mainly due to seasonal factors and 1,838 million yen in accrued income taxes due to the payment of income taxes. Non-current liabilities decreased 671 million yen due to a decrease of 1,031 million yen in long-term borrowings for scheduled repayments.

Net assets

Net assets decreased 375 million yen from the end of the previous fiscal year. Although there was an increase of 336 million yen in retained earnings due to a profit attributable to owners of parent and dividend from surplus, a net decrease of 288 million yen in treasury shares as a result of repurchase and retirement, and a decrease of 1,165 million yen in capital surplus due to the retirement of treasury shares.

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

Sales and operating profit in the first quarter were high in relation to the pace required to accomplish the fiscal year forecast because economic activity in Japan continues to return to normal and demand is rebounding following the downturn caused by the pandemic.

There are no revisions to the fiscal year forecast that was announced on May 11, 2023 because of uncertainty about the outlook caused by the high cost of energy and raw materials, the yen's weakness, and the increasing tendency of consumers to hold down spending due to inflation and other concerns.

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