AOKI : Supplementary Materials (for the First Half of the Fiscal Year Ending March 31,2023)

Supplementary Materials

for the First Half of the Fiscal Year Ending March 31, 2023

November 10, 2022

AOKI Holdings Inc.

1. All amounts are rounded down to the less than unit.

1. From the beginning of FY3/22, AOKI Holdings is applying the revenue recognition accounting standard. This standard is not retrospectively applied to all figures for FY3/19.
2. Acquisition of RUNSYSTEM Co., Ltd. as a subsidiary in June 2022. Reflected in results from the second quarter of FY3/23.
3. Net income(loss) per share: Net income(loss) divided by average number of shares outstanding(excluding treasury stock).

First Half of FY3/23 Results

Sales and earnings increased as the impact of the COVID-19 pandemic declined, Operating Profit for the first time in three years,

Profit attributable to owners of parent for the first time in five years

※Reference 1H FY3/19 Before the pandemic		1H FY3/22		1H FY3/23
Sales	(Billions of yen)		(Billions of yen)	Sales	(Billions of yen)
84.4		Sales
		75.5
		62.3

Operating

Operating

Ordinary

Profit

profit

attributable

profit

profit

Ordinary

Loss

Loss

2.0

to owners

1.5

1.6

profit

attributable

attributable

of parent

Operating

Ordinary

0.5

to owners

to owners

0.5

of parent

loss

loss

of parent

-1.0

-3.0

-3.4

-3.7

Business climate

AOKI Group

• There was no declaration of a state of emergency or application of priority measures to prevent the spread of the virus.
• Despite the rapid spread of the disease since July, socioeconomic activities have returned to normal with no restrictions on movement.
• Rising raw material prices, yen's depreciation.

• The number of customers increased in all businesses due to relaxation of movement restrictions.
• Acquisition of RUNSYSTEM Co., Ltd. as a subsidiary in June 2022. Reflected in results from the second quarter of FY3/23.
• The AOKI Group opened 26 stores and closed 30 stores for conversions to different formats or to improve operating efficiency.

AOKI Holdings Inc.

2

Consolidated earnings trends for the first half from the FY3/17, to the FY3/23

(Billions of yen)			Operating profit	Operating profit
Sales(1Q)	Sales(2Q)	/loss(1Q)	/loss(2Q)		Operating margin(1H)

82.6	85.6	84.4	82.7
				75.5
36.3	39.4	39.3	39.4		62.3		2.7%
	55.9
						36.3
			1.9%			29.4
		1.6%			29.7
46.3	46.2	45.1	43.3				2.0
0.8%			39.2
		1.3	1.5	0.5%	26.2	32.9		0.4
		0.4
		0.8
1.6					1.5
		0.1
-0.9					-1.4
					-7.5
						-1.6
					-4.3	-5.0%
						-3.0
					-21.2%	8
	1H FY17/3	1H FY18/3	1H FY19/3	1H FY20/3	1H FY21/3	1H FY22/3	1H FY23/3
							AOKI Holdings Inc.	3

First Half of FY3/23 Results by Segment

Fashion

Anniversaire and Bridal

Entertainment

Sales and profit increased due to an increase in the number of customers due to the easing of movement restrictions and favorable sales of formal wear, ladies wear, and casual-related products.

Sales decreased because of decreased in the number of facilities, however earnings increased because of improved gross profit margin.

Sales and earnings increased because of new stores were opened and the impact of the pandemic decreased.

Sales

(Billions of yen)

	84.4			75.5
	1.5		+21.2％
		62.3	2.3
	26.7
	2.1	+11.4％
	12.4			34.5
	27.0	+27.9％
				4.2
		4.3	-2.2％
	44.6	30.4		36.1
		+18.9％
	1H FY3/19	1H FY3/22		1H FY3/23

※Before the pandemic

		Operating profit/loss
(Billions of yen)
1.9		1.8	2.0
1.5
0.6	0.3	0.4	0.4
	0.02	0.2
		-0.1	-0.02
-1.5

-3.2-3.0

1H FY3/19

1H FY3/22

1H FY3/23

※Before the pandemic

■ Fashion ■ Anniversaire/Bridal ■ Entertainment ■ Real Estate Leasing ■ Consolidated Total

AOKI Holdings Inc.

4

FY3/23 Consolidated Forecast

Revised initial forecast based on the first half of FY3/23 consolidated results

※Reference FY3/19	FY3/22		FY3/23 Initial forecast	FY3/23 Revised forecast
Before the pandemic
Sales					Sales			Sales
195.0	(Billions of yen)		(Billions of yen)	(Billions of yen)	(Billions of yen)
		Sales			166.1			172.7
		154.9
Operating
profit	Ordinary
13.4	profit
	11.8				Operating Ordinary		Operating	Ordinary
	Profit					profit
	attributable	Operating			profit	profit		8.8	profit Profit
	to owners	profit Ordinary	Profit	7.7		Profit		8.1 attributable
	of parent		profit attributable		7.0 attributable		to owners
		5.4		to owners		of parent
	4.6	4.3	to owners
			of parent		4.1
			of parent
				2.5			3.2

Business climate

• Although the spread of COVID-19 is trending downward, there are no restrictions on movement, socioeconomic activities are normalizing, and consumption is expected to recover.
• Start of nationwide travel support, regional economic revitalization
• Rising raw material prices, yen's depreciation

AOKI Group

• Implement various measures in response to increased demand for products and services of each business.
• Continue to provide products and services that match new life styles.
• The AOKI Group opened 30 stores and closed 57 stores for conversions to different formats or to improve operating efficiency.

AOKI Holdings Inc.

5