Aoki Holdings, Inc.TSE: 8214

Performance Briefing (for the Fiscal Year Ended March 31, 2024)

Jun 3, 2024 at 7:33 AM UTC · Issued by Aoki Holdings, Inc.

Performance Briefing

for the Fiscal Year Ended March 31, 2024

May 23, 2024

AOKI Holdings Inc.

Contents

FY3/24 Review of Operations

FY3/25 Earnings Forecast and Shareholder Returns

Fashion Business FY3/24 Performance and FY3/25 Forecast

Entertainment Business FY3/24 Performance and FY3/25 Forecast

Anniversaire and Bridal Business FY3/24 Performance and FY3/25 Forecast

Medium-term Management Plan (FY2024 - 2026)

Supplementary Documents

All monetary figures are rounded down.
The Accounting Standard for Revenue Recognition has not been retroactively applied to fiscal years before FY3/21.
Sales and earnings of RUNSYSTEM, which became a subsidiary in June 2022, are included beginning with the second quarter of FY3/23.
The method of measuring segment sales and profits/losses was changed in FY3/24. Financial data for FY3/23 has been prepared and reported based on the measurement method after the change.

AOKI Holdings Inc.

Business Portfolio Comprised of Three Segments

Fashion Business

"Pleasure of dressing well"

The AOKI Group's founding business. Suits are the key item in this business, but we also provide casual wear and women's wear to enrich the fashion lives of our customers both at work and outside of work.

Entertainment Business

Offering entertainment and relaxationProvides customers opportunities for rest, relaxation and entertainment in a variety of welcoming environments. Café complex "KAIKATSU CLUB" boasts top sales in industry.

Anniversaire and Bridal Business

Choreographing special events where customers are in the spotlightChoreographs weddings -and"guesthouse" weddings in particular- to ensure customers shine on the most important day of their lives.

AOKI

Chain of primarily roadside stores, although we have also recently begun to focus on opening stores in central Tokyo, shopping centers and malls. Features carefully planned products and stylists with highly- specialized knowledge that offer total coordination to customers.

ORIHICA

Chain of stores primarily in shopping centers. Offer new "business" and "business-to-casual" styles targeting men and women in their 20s to 40s.

Size MAX

Specializes in plus-size men's and women's apparel between sizes 2L and 8L with a selection that includes suits and formal and casual fashions.

KAIKATSU CLUB / JIYU KUKAN

KAIKATSU CLUB has a shared working space with a Bali Island theme for relaxation. JIYU KUKAN is a place for enjoyment and rejuvenation.

Ideal for relaxing on your own, refreshing your mind, doing telework or enjoying time with family members on a day off.

COTE D'AZUR

Communication space, modeled after the luxury resort area COTE D'AZUR in south France, that provides a refreshing and relaxing atmosphere filled with song and conversation. It offers pleasurable moments for people's everyday lives.

Fitness: FiT24

24-hourself-service fitness centers, featuring a pleasant environment for training activities and a diverse lineup of services.

ANNIVERSAIRE OMOTESANDO

Completed in 1998 based on the concept of "anniversary." Located in the center of the Omotesando district and has a chapel, space for parties, and a café. Many amenities and features involving time, experiences, merchandise and services for weddings and anniversaries.

ANNIVERSAIRE

Guesthouse wedding facility with a European style chapel and garden filled with flowers and greenery. The Group operates facilities nationwide. These facilities are our answer to customers who want a unique wedding that reflects their individuality. The picture shows the flagship MINATO MIRAI YOKOHAMA.

AOKI Holdings Inc.

FY3/24 Review of Operations

FY3/24 Results Summary

Business climate

Normalization of social and economic activities
Recovery of consumer activity due to end of most pandemic restrictions, return to the office, and increased demand for going out
Rise in raw material prices
Weather factors such as hot summer, lingering summer heat and warm winter
Product and service strategies that meet consumer needs

AOKI Group

Favorable results of existing stores in all business segments
Higher sales and earnings for the third consecutive fiscal year
Appropriate measures as needed in response to rising costs
Sales and earnings exceeded forecast for the fiscal year ended March 31, 2024

Sales	187.7 billion yen	Operating	13.8 billion yen

	(up 6.6% YoY)	profit	(up 35.4% YoY)

Ordinary	13.2 billion yen

profit	(up 57.0% YoY)

Profit attributable	7.5 billion yen
to owners of parent	(up 34.5% YoY)

AOKI Holdings Inc.

FY3/24 Consolidated Profit and Loss

				(Millions of yen)

Account/Period	FY3/23	FY3/24	Change	YoY %

Sales	176,170	187,716	11,546	106.6

Gross profit	69,556	76,929	7,373	110.6
Gross profit margin	39.5%	41.0%	+1.5pt

Selling, general and administrative	59,320	63,069	3,749	106.3
expenses

Operating profit	10,235	13,860	3,624	135.4
Operating margin	5.8%	7.4%	+1.6pt

Non-operating profit	404	329	-74	81.5

Non-operating expenses	2,209	954	-1,255	43.2

Ordinary profit	8,430	13,235	4,804	157.0

Extraordinary gains	1,324	1,003	-320	75.8

Extraordinary losses	1,994	1,798	-196	90.2

Profit attributable to owners of parent	5,632	7,574	1,941	134.5

Net income per share (yen)	66.34	90.03	23.69	-

AOKI Holdings Inc.

FY3/24 Results

FY3/23

Sales	(Billions of yen)	187.7	110.7
176.1
		Cost

		Sales	of
			sales

76.9 63.0

Gross SG&A profit expenses

FY3/24

(Billions of yen)

Non-operating expenses

Interest expenses
Loss on store closing, etc.

Extraordinary income

Gain on sale of investment securities
Settlements received, etc.

Extraordinary losses

• Impairment loss

Non-

Extraordinary

operating operating

income Extraordinary

Operating

Profit

Operating profit

expenses

1.0

losses

Total income

1.7

profit Ordinary

profit

0.3

0.9

taxes

Profit

attributable

profit

attributable

10.2

to owners

8.4

to owners

of parent

4.8

of parent

5.6

13.8

13.2

12.4

7.5

Ordinary

Profit before

Major components

profit

income taxes

Sales

Increase in existing-store sales in all business segments

Non-operating

Decrease in loss on retirement of non-current assets

expenses

Gross profit

Gross profit margin: up 1.5pt YoY

Extraordinary Gain on sale of investment securities and shares of

income

subsidiaries and associates, settlements received

Operating profit

Increase in operating profit due to higher existing-store

Extraordinary

Decrease in impairment loss

sales and improved gross profit margin

losses

AOKI Holdings Inc.

Consolidated Earnings Trends from FY3/14 to FY3/24

(Billions of yen)		Sales		Operating profit/loss		Operating margin

					¥187.7 billion
				198.4
			194.0	195.0
		188.5
179.4	183.8			180.2
			176.1



11.4%						154.9
					143.1
	10.4%

		9.4%					7.4%
20.3	19.0
	17.7	7.4%	7.5%
		6.9%
							¥13.8 billion
			14.4	14.8	13.4	5.8%

3.7%	3.5%	10.2

6.6	5.4

		Before the pandemic				-5.7
								-4.0%
FY3/14	FY3/15	FY3/16	FY3/17	FY3/18	FY3/19	FY3/20	FY3/21	FY3/22	FY3/23	FY3/24

									AOKI Holdings Inc.	8

FY3/24 Results by Segment

		Existing-store sales remained strong due to increase in sales per customer, resulting in third
		consecutive year of increase in sales and profits.
Fashion		• Change in existing-store sales: up 5.7% (forecast: up 3.0%)
		• Change in existing-store sales per customer: up 6.2% (forecast: up2.2%)
		• Stores opened: 6 stores; closed: 9 stores

		The number of customers increased as social and economic activities returned to normal; record-high
Entertainment		operating profit was achieved
	• Change in existing-store sales: up 5.5% (forecast: up 5.4%)
		• Stores opened: 14 stores; closed: 40 stores (include RUNSYSTEM)

		ANNIVERSAIRE OMOTESANDO closed from April to August and expenses increased due to renewal
Anniversaire and Bridal		• Change in the number of weddings at existing locations: up 13.1% (forecast: up 10.6%)
		• Change in sales per couple at existing locations: up 5.0 (forecast: up 4.9%)
Sales	Operating profit

(Billions of yen)

195.0

3.1

25.4

54.1

114.4

176.1

4.8

9.4

70.8

94.5

+6.6%

187.7

+25.9% 6.0

+9.0%	10.2

+6.6%	75.5

+5.8%

100.0

(Billions of yen)

13.4

0.6

2.1

3.1

7.2

10.2

0.7

0.3

3.1

6.6

+35.4%

+75.7%

-85.0%

+71.4%

+21.3%

13.8

1.3

0.05

5.4

8.0

FY3/19

FY3/23

FY3/24

*Before the pandemic

FY3/19

FY3/23

FY3/24

*Before the pandemic

■ Fashion

■ Entertainment

■ Anniversaire/Bridal

■ Real Estate Leasing

*The sum of the business segment items does not match the total because of inter-segment eliminations.

AOKI Holdings Inc.

Consolidated Balance Sheet

FY3/23

(Billions of yen)

FY3/24		Major Components

(Billions of yen)	Assets

Total assets: ¥233.4 billion

Current

Current liabilities

assets 48.9

78.8

Non-current

liabilities

52.2

Non-current

assets

Net assets

154.5 132.2

Total assets: ¥236.3 billion

(+2.9 vs. FY3/23)

		Current
Current		liabilities
	51.8
assets
	(+2.9)
81.8

(+2.9)		Non-current
		liabilities
		47.4

		(-4.8)

Non-current
assets	Net assets

154.5 137.0

(-0.0)(+4.8)

Current assets
- Decrease in cash and deposits
- Increase in accounts receivable-trade due to higher sales
- Increase in inventories due to an increase in purchases
Non-currentassets
- Increased mainly due to purchase of property, plant and equipment
- Decreases in intangible assets and investments and other assets

Liabilities

Current liabilities
- Decrease in current portion of long-term borrowings mainly for scheduled repayments
- Increase in accounts payable-trade due to an increase in purchases
- Increases in lease obligations and accrued expenses and others
Non-currentliabilities
- Decrease in long-term borrowings mainly for scheduled repayments

Net assets

*Figures in parenthesis represent changes from FY3/23

Capital surplus
- Decreased mainly due to the retirement of treasury shares
Retained earnings
- Increased due to a profit attributable to owners of parent and dividend from surplus

AOKI Holdings Inc.

Earlier from Aoki

AOKI: Supplementary Materials (for the Fiscal Year Ended March 31,2024)May 10, 2024

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