Performance Briefing · Performance Briefing for the First Half of the Fiscal Year Ending March 31,...

Performance Briefing for the First Half of the Fiscal Year Ending March 31, 2018

November 17, 2017 AOKI Holdings Inc.

Fashion Bridal Entertainment

http://www.aoki-style.com/

http://www.orihica.com/

http://www.anniversaire.co.jp/

http://www.kfit.jp/

AOKI Holdings Inc.

FY3/18 Earnings Forecast

Entertainment Business Performance and Forecast

Fashion Business Performance and Forecast

2

Contents

AOKI Group's Business Portfolio Management

First Half of FY3/18 Review of Operations

Consolidated Profit and Loss

Major Changes in Sales and Operating Profit by Business Segment

Major Changes in Consolidated Balance Sheet

Major Changes in Consolidated Statement of Cash Flows

Number of Stores Opened/Closed

Consolidated Forecast

Forecast for Sales and Operating Profit by Business Segment

Outlook for Store Openings/Closings


Second Half of FY3/18 Initiatives

FY3/18 Full-year Forecast

Growth Initiatives

Anniversaire and Bridal Business Performance and Forecast

Features and Position within Industry



Supplementary Documents

Karaoke Facility Operations: Facility Types



Café Complex Operations: Facility Types



First Half of FY3/18 Consolidated Business Results

First Half of FY3/18 Major Expenses

Full-year FY3/18 Consolidated Forecast

Full-year FY3/18 Major Expenses

First Half of FY3/18 Fashion Business Performance

FY3/18 Fashion Business Outlook

First Half of FY3/18 Entertainment Business Performance

FY3/18 Entertainment Business Outlook

Business Portfolio Comprised of Three Segments

First Half of FY3/18 Financial Highlights


Goals for FY3/18

Medium-term Challenges and Progress

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AOKI Group’s Business Portfolio Management

AOKI Holdings Inc.

Business Portfolio Comprised of Three Segments

4 4

AOKI

ORIHICA

Fashion Business Anniversaire and Bridal Business Entertainment 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.

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

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

ANNIVERSAIRE OMOTESANDO Karaoke Facility: COTE D'AZUR

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.

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

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 Paris-style café. Well-known for hosting the weddings of the famous, has become one of the top brands for weddings.

ANNIVERSAIRE

Guesthouse wedding facility with a European style chapel and garden filled with flowers and greenery. The Group operates 14 such facilities nationwide. These facilities are our answer to customers who want a unique wedding that reflects their individuality. In February 2014, flagship MINATO MIRAI YOKOHAMA was opened.

Karaoke party 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.

Café Complex: KAIKATSU CLUB

Café complex, modeled after the island of Bali, that provides a relaxing and rejuvenating environment for those who want to quietly rest or those who just want a change of pace. Recently, sections exclusively for women are expanded.

AOKI Holdings Inc.

First Half of FY3/18 Financial Highlights

5

1H FY3/17 Results 1H FY3/18 Results

Sales increased due to new store openings and contributions from existing-store sales in the Café Complex Operations Business. Earnings increased because of an improvement in a Fashion Business gross profit margin and lower SG&A expenses.

Cost of sales 48.3

SG&A expenses

33.6

Operating margin 0.8%

Gross profit

margin 41.5%

82.6

34.3

0.6

Cost of sales 50.6

SG&A expenses

33.6


Gross profit

margin 40.9%

Gross profit margin fell by 0.6pt (In Fashion Business, gross profit margin up by 0.5pt)

SG&A expenses: down by 0.1% YoY

Key point

Key point

85.6

35.0

1.3

(Billions of yen) (Billions of yen)

Sales Gross profit Operating profit Sales Gross profit Operating profit

AOKI Holdings Inc.


6

FY3/17 Results FY3/18 Forecast

Forecast sales and profit growth backed by contributions from new stores and existing store invigoration in each business.

Cost of sales 112.0

SG&A expenses

73.3

SG&A expenses: up by 2.0% YoY

199.8

87.8

14.5


Gross profit margin

43.9%

Key point

Gross profit margin fell by 0.6pt (In Fashion Business, gross profit margin up by 0.1pt)

Key point

SG&A expenses

71.8

194.0

86.3

14.4

Cost of sales 107.7

Gross profit margin

44.5%

Operating margin

7.4%

(Billions of yen) (Billions of yen)

Sales Gross profit Operating profit Sales Gross profit Operating profit

AOKI Holdings Inc.

FY3/18 first-half accomplishments

FY3/18 second-half initiatives

Goals for FY3/18

All operations

Goals for FY3/18

Take actions to invigorate existing stores while opening new stores in carefully selected locations

(including closure of unprofitable stores)

Fashion

Anniversaire and Bridal

Karaoke Facility Operations

Café Complex Operations

7

Plan to renovate about 40 stores

Further strengthen merchandise lineups of functional products, women’s apparel and business-to-casual wear

Continue using effective marketing activities

Continue negotiations for cost cutting

Plan to remodel 6 karaoke facilities and 25 café complexes

Renovated about 60 stores

Strengthened merchandise lineups of Washable Suits and women’s apparel

Strengthened measures to attract couples and increase orders resulted in higher number of couples married

Strengthened Proposal Plan and other promotional services

More negotiations for cost cutting

Remodeled 19 karaoke facilities and 18 café complexes

Introduced the latest karaoke system, high-performance PCs and high-speed Wi-Fi services

Streamlined the head office organization

Continue remodeling to make stores more appealing

Strengthen merchandise lineups and store operations

Use effective marketing activities to attract more couples and increase orders

Offer a larger selection of original services

Improve operating efficiency

Make substantial investments for renovations

Purchase karaoke equipment and PCs with the latest technology

Improve operating efficiency; focus resources more tightly

AOKI Holdings Inc.

Respond to new customer needs • Use information technology

(smartphones) • Increasing age of customers • Polarization of income/More working

women • Increasing demand for large sizes

Make stores more pleasant and appealing

Determine policy for store openings

Quickly build a strong profit structure

Determine policy for café openings

Operate facilities that match the preferences of today’s customers

Leverage strengths to overcome intense competition

Shrinking bridal market Increasingly diverse formats for

weddings Improvement of operating efficiency

Medium-term Challenges and Progress

The AOKI Group aims to increase synergies and operate more efficiently

8

Fashion

Anniversaire and Bridal

Café Complex

Karaoke

Increasing the use of the AOKI OASYS personal order system

A paperless system with a faster payment procedure

AOKI started selling Hatarakufuku (working clothes)

Expand the selection of large size (Size MAX) apparel

Reexamine locations one by one and improve profitability

Improve operating efficiency and focus resources more tightly for the entire entertainment business sector

More original services at ANNIVERSAIRE and start of a business for celebrating anniversaries


AOKI Holdings Inc. 10

(Millions of yen)

Account/Period 1H FY3/17 1H FY3/18 Change YoY % Major Components

Sales 82,656 85,675 3,019 103.7 Contributions from new stores, and increase in existing-store sales in the Café Complex Business

Gross profit Gross profit margin

34,342 41.5%

35,006 40.9%

663 -0.6pt

101.9 Gross profit margin rose by 0.5pt in the Fashion Business

Selling, general and administrative expenses

33,681 33,646 -35 99.9 Decrease in store-remodeling expenses, etc. in the Fashion Business

Operating profit Operating margin

660 0.8%

1,359 1.6%

699 +0.8pt

205.8 Improvement in gross profit margin in the Fashion Business, and decline in SG&A expenses

Non-operating profit 576 444 -132 77.0

Non-operating expenses

728 844 115 115.8

Ordinary profit 508 959 451 188.7

Extraordinary gains 542 - -542 - Gain on sale of investment securities in 1H FY3/17

Extraordinary losses 494 376 -117 76.2 Mainly impairment losses

Profit attributable to owners of parent

152 163 10 106.7

Depreciation: ¥4,195 million (including lease assets of ¥899 million) 1H YoY existing-store sales: -1.8% for Fashion, -0.5% for Karaoke, +1.6% for Café Complex

Consolidated Profit and Loss


Major Changes in Sales and Operating Profit by Business Segment

Business Segment 1H FY3/17 1H FY3/18 Change YoY % Major Components

82,656 85,675 3,019 103.7

Fashion 45,811 46,298 486 101.1 Contributions from new stores

Anniversaire and Bridal 12,908 13,187 279 102.2 Increase in the number of couples married

Entertainment (Total) 23,950 26,212 2,261 109.4

(of which) Karaoke 8,856 8,939 82 100.9

(of which) Café Complex 15,094 17,273 2,179 114.4 Contributions from new facilities and higher sales at existing facilities

Business Segment 1H FY3/17 1H FY3/18 Change YoY % Major Components

660 1,359 699 205.8

Fashion -1,816 -1,057 759 - Improvement in gross profit margin and decline in SG&A expenses

Anniversaire and Bridal 831 947 116 114.0 Increase in the number of couples married

Entertainment (Total) 1,312 1,072 -239 81.7

(of which) Karaoke 38 -26 -64 - Lower sales at existing facilities and higher cost of sales

(of which) Café Complex 1,274 1,099 -175 86.3 Higher cost of sales

Inter-segment transactions 333 396 63 119.1

(Millions of yen)

(Millions of yen)

Sales by business segment

Operating profit by business segment

Total

Total


(Millions of yen)

Account/Period FY3/17 1H FY3/18 Change Major Components

Current assets 74,963 67,575 -7,387

Cash in hand and in banks 28,608 27,436 -1,171 Capital investments and payment of income taxes

Inventories 26,905 27,071 165

Fixed assets 159,718 160,418 700

Tangible fixed assets 111,686 113,320 1,633 New store openings and renewals, etc.

Intangible fixed assets 6,301 5,901 -399

Investments and other assets 41,730 41,196 -534

Total assets 234,681 227,993 -6,687

Current liabilities 39,197 34,242 -4,954

Accounts payable-trade 19,159 14,486 -4,672 Seasonal factors

Short-term debt - 4,000 4,000

Current portion of long-term debt 4,150 650 -3,500

Long-term liabilities 51,577 52,063 486

Long-term debt 37,125 36,800 -325 Scheduled repayment, etc.

Total liabilities 90,774 86,306 -4,468

Common stock 23,282 23,282 -

Capital surplus 27,833 27,833 0

Retained earnings 96,753 94,996 -1,756 Profit and dividend from surplus

Treasury stock -4,325 -4,842 -517 Purchase of treasury stock

Total accumulated other comprehensive income

274 328 54

Stock acquisition rights 87 87 -

Total net assets 143,906 141,687 -2,219

Total liabilities and net assets 234,681 227,993 -6,687

Major Changes in Consolidated Balance Sheet


Account/Period 1H FY3/17 1H FY3/18 Change Major Components

Cash flows from operating activities

2,375 5,897 3,522 Decrease in income taxes paid and consumption taxes paid

Cash flows from investing activities

-2,424 -3,674 -1,250 Decrease in proceeds from the sales of investment securities in 1H FY3/17

Cash flows from financing activities

-5,074 -3,395 1,679 Scheduled repayment of long-term debt increased while there was short-term debt of ¥4.0 billion

Change in cash and cash equivalents

-5,123 -1,171 3,952

Beginning balance 27,560 28,608 1,047

Ending balance 22,436 27,436 4,999

(Millions of yen)

Major Changes in Consolidated Statement of Cash Flows


Business Segment Stores/Facilities

1H FY3/17 1H FY3/18

Number of Stores

Opened Closed Number of

Stores Opened Closed

Fashion AOKI 565 3 5 573 8 8

ORIHICA 144 1 1 142 2 5

Anniversaire and Bridal ANNIVERSAIRE 14 - - 14 - -

Karaoke COTE D'AZUR 188 6 1 183 4 6

Café Complex KAIKATSU CLUB, other* 315 21 1 362 19 3

Total 1,226 31 8 1,274 33 22

Capital Expenditures 7,490 5,830

Number of Stores Opened/Closed

(Millions of yen excluding number of stores)

Capital Expenditures 1H FY3/17 1H FY3/18

Fashion 3,125 1,291

Anniversaire and Bridal 179 208

Karaoke 1,123 1,242

Café Complex 2,785 3,067

Consolidated Total 7,490 5,830

(Millions of yen)

* Includes KAIKATSU FITNESS CLUB



Assumptions

Account/Period FY3/17 FY3/18 (Forecast) Change YoY % Major Components

Sales 194,046 199,850 5,803 103.0 Contributions from new stores, and increase in existing-store sales at the Café Complex Business

Gross profit Gross profit margin

86,315 44.5%

87,820 43.9%

1,504 -0.6pt

101.7 Increase in gross profit margin by 0.1pt in the Fashion Business

Selling, general and administrative expenses

71,868 73,320 1,451 102.0 Increase in personnel and advertising expenses

Operating profit Operating margin

14,447 7.4%

14,500 7.3%

52 -0.1pt

100.4 Increase in the Fashion Business by 0.2pt

Non-operating profit 1,070 950 -120 88.8

Non-operating expenses 1,621 1,450 -171 89.4

Ordinary profit 13,895 14,000 104 100.8

Extraordinary gains 545 - -545 - Gain on sale of investment securities in FY3/17

Extraordinary losses 2,937 1,800 -1,137 61.3 Mainly impairment losses

Profit attributable to owners of parent

7,355 7,600 244 103.3

Consolidated Forecast

Depreciation: ¥8,650 million (including lease assets of ¥1,880 million)

(Millions of yen)

3Q 4Q 2H Full year

Fashion 1.0% 1.1% 1.1% 0.0%

Karaoke -0.8% 1.7% 0.4% -0.2%

Café Complex 0.6% 3.2% 1.9% 1.7%

YoY existing-store sales


Forecast for Sales and Operating Profit by Business Segment

Business Segment FY3/17 FY3/18 (Forecast) Change YoY %

Total 14,447 14,500 52 100.4

Fashion 8,167 8,500 332 104.1

Anniversaire and Bridal 2,760 2,800 39 101.4

Entertainment (Total) 2,781 2,800 18 100.7

(of which) Karaoke 887 900 12 101.4

(of which) Café Complex 1,893 1,900 6 100.4

Inter-segment Transactions 737 400 -337 54.2

Business Segment FY3/17 FY3/18 (Forecast) Change YoY %

Total 194,046 199,850 5,803 103.0

Fashion 118,264 119,200 935 100.8

Anniversaire and Bridal 26,860 27,700 839 103.1

Entertainment (Total) 48,940 53,000 4,059 108.3

(of which) Karaoke 18,676 18,800 123 100.7

(of which) Café Complex 30,264 34,200 3,935 113.0

(Millions of yen)

(Millions of yen) Sales by business segment

Operating profit by business segment

AOKI Holdings Inc.

Business Segment Stores/Facilities

FY3/17 FY3/18 (Forecast)

Number of Stores

Opened Closed Number of

Stores To be

Opened To be

Closed

Fashion AOKI 573 14 8 574 13 12

ORIHICA 145 5 4 136 6 15

Anniversaire and Bridal ANNIVERSAIRE 14 - - 14 - -

Karaoke COTE D'AZUR 185 9 7 184 6 7

Café Complex KAIKATSU CLUB, other* 346 52 1 364 22 4

Total 1,263 80 20 1,272 47 38

Capital Expenditures 14,994 11,000

18

※ 快活フィットネスクラブ含む

Outlook for Store Openings/Closings

Capital Expenditures FY3/17 FY3/18 (Forecast)

Fashion 6,289 2,670

Anniversaire and Bridal 300 500

Karaoke 1,917 2,435

Café Complex 5,935 4,439

Consolidated Total 14,994 11,000

(Millions of yen) * Includes KAIKATSU FITNESS CLUB

(Millions of yen excluding number of stores)

Fashion Business

FY3/18 First-half Performance and Full-year Forecast

AOKI Holdings Inc.

-2,000

-1,500

-1,000

-500

0

500

43,500

44,000

44,500

45,000

45,500

46,000

46,500

Sales Operating

profit

20 20

Fashion Business: First Half of FY3/18 Review of Operations

1H FY3/17 1H FY3/18

(Millions of yen)

1H FY3/18

YoY % % to sales

Sales 46,298 101.1 100.0

Gross profit 27,552 102.0 59.5

SG&A expenses 28,609 99.3 61.8

Operating profit -1,057 - -

Sales increased due to contributions from new stores; Operating loss much better than one year earlier due to higher gross profit margin and lower SG&A expenses

-1,816

Sales up 1.1% YoY

New store openings AOKI: 3 ORIHICA: 2

Operating loss: Improved ¥759 million

-1,057

45,811

46,298

(Millions of yen) (Millions of yen)

1H FY3/17 1H FY3/18

Gross profit margin up 0.5pt YoY Decline in sale associated with store renovations

and inventory clearance

Increase in the unit price of suits

SG&A expenses down 0.7% YoY Decrease in the cost of major remodeling

projects in FY3/17

AOKI Holdings Inc.

-15

-10

-5

0

5

10

15

Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct.

Sales

Customers

Sales per customer

Existing-store sales down 1.8%

21

Sales per customer increased as higher unit prices and more items purchased per customer offset a decline in customer traffic caused by a smaller number of store renovation sales

Fashion Business: First Half of FY3/18 Review of Operations: Existing Stores

Oct

2016

Nov

2016

Dec

2016

Jan

2017

Feb

2017

Mar

2017

Apr

2017

May

2017

Jun

2017

Jul

2017

Aug

2017

Sep

2017 First-half

Oct 2017

Existing-store sales (%) 11.3 -0.8 -1.0 1.0 3.7 5.0 -1.6 -7.5 -5.4 3.4 1.0 5.8 -1.8 -1.7

No. of customers (%) 11.2 2.9 -7.2 -5.2 -1.6 -2.6 -9.2 - 13.2 -9.8 0.5 -2.6 0.5 -7.1 -11.9

Sales per customer (%) 0.1 -3.6 6.6 6.6 5.3 7.8 8.4 6.6 4.9 2.8 3.7 5.3 5.7 11.6

Deviation from average temperature (ºC) (Tokyo)

+1.2 -0.7 +1.3 +0.6 +1.2 -0.2 +0.8 +1.8 +0.6 +2.3 0.0 0.0 - -0.7

(%)

FY3/17 FY3/18

1Q Sales: -4.9% Number of customers: -10.9% Sales per customer: 6.7%

Customer traffic decreased following the contribution of renovation sales in FY3/17, but sales per customer increased due to higher unit prices.

2Q Sales: 3.4% Number of customers: -0.4% Sales per customer: 3.8%

Sales per customer increased because of higher unit prices and more items purchased by each customer resulting from strong sales of Cool Biz apparel.

Monthly Change in Existing-store Sales


Strengthened the lineup of formal wear

Well-planned store openings and renovations

Closed unprofitable stores

Formal wear: Sales up about 15% YoY

New stores in Kawasaki (Mizonokuchi) and Tokyo (Musashi-sakai) Renovation and expansion: Diamor Osaka store

Closed 5 stores

Initiatives to revitalize existing stores improved profitability Fashion Business: First Half of FY3/18 Review of Operations

More advances for Truly Washable Suits

Larger lineup of apparel for women

Suits for athletes Started selling Athlete MAX Suits

Truly Washable Suits: Sales up about 50% YoY

Apparel for women: Sales up about 8% YoY

Strong sales of Athlete MAX Suits

Opened stores and closed unprofitable stores

Renovated about 60 stores

Expanded the selection of large size (Size MAX) apparel

Opened 8 stores and closed 8 stores

Focused on highest priority stores and projects

Now operating 70 Size MAX stores (including 4 stand-alone Size MAX stores)


Fashion Business: Second Half of FY3/18 Initiatives

AOKI welcomes customers using WeChat Pay

Stores offer a multi-language simultaneous interpreting/video interpreting service

Hatarakufuku

AOKI: Use many actions to invigorate existing stores

Rakudo Suits

Size MAX

Rakudo Suits and Rakudo Coats – The greatest possible comfort Advertising features actors Tori Matsuzaka and Noriyuki Higashiyama

Hatarakufuku (working clothes) – Outstanding functions (washable, wrinkle resistance, easy stretching) + Stylish designs Advertising features fashion model Yuri Ebihara and actress Aya Omasa

The AOKI OASYS personal order system

NECSAS makes purchasing items faster and more convenient

Services for foreign tourists in Japan (WeChat Pay, multi-language simultaneous interpreting/video interpreting, others)

New stand-alone stores + Addition of Size MAX selection to existing AOKI stores Stand-alone stores: 5 Size MAX inside AOKI stores: 68 (as of Oct. 31, 2017)

Expand the selection of Athlete Max Suits

AOKI Holdings Inc.

Fashion Business: Second Half of FY3/18 Initiatives

ORIHICA: Continue upgrading merchandise and improving profitability

24

Formal gilet (a sleeveless jacket) style MARRONNIER GATE GINZA Store

Increase mix-and-match ideas for men’s and women’s suits

Extend THE 3rd SUITS brand to include apparel for women

Expand the lineup of Super Stretch Shirts

Target “ceremony demand” at shopping centers

Opened MARRONNIER GATE GINZA Store

Super Stretch Shirts

THE 3rd SUITS

AOKI Holdings Inc.

116,000

117,000

118,000

119,000

120,000

Sales and profit growth backed by existing store invigoration and new stores Fashion Business: FY3/18 Full-year Forecast

25

Sales up 0.8% YoY

Operating profit up 4.1% YoY

Change in existing-store sales (forecast)

Increase in new store openings (forecast)

Gross profit margin up 0.1pt YoY

• Increase in unit prices

SG&A expenses up 0.6% YoY

• Higher personnel expenses as the full-time

workforce increases

• Higher depreciation resulting from store

renovations

(Stores)

Sales Operating profit/ Operating margin

FY3/18 Forecast

YoY % % to sales

Sales 119,200 100.8 100.0

Gross profit 71,400 101.0 59.9

SG&A expenses 62,900 100.6 52.8

Operating profit 8,500 104.1 7.1

(Millions of yen)

(Millions of yen)

118,264

119,200

Full-year Vs. initial

AOKI 13 +4

ORIHICA 6 +1

1H 2H Full-year

-1.8% 1.1% 0.0%

FY3/17 FY3/18 Forecast FY3/17 FY3/18 Forecast

(Millions of yen)

8,167

8,500

6.9% 7.1%

AOKI Holdings Inc.

0

5

10

15

20

25

30

35

FY3/07 FY3/11 FY3/15 FY3/16 FY3/17 Target

Fashion Business: Growth Initiatives

Activities to continue the growth of sales of apparel for women

26

Net sales (Billions of yen)

Up about

times over 10 years

AOKI Functions + Stylish

ORIHICA More mix-and-match ideas Responding to the

increasing number of working women and dual-income married

couples and other changes in the market for women’s apparel

AOKI Holdings Inc.

Fashion Business: Growth Initiatives

Current performance and measures to build a base for growth

Existing store sales up for the first time in 3 years!

Renovated 120 stores Store renovation sales

increased customer traffic and reduced inventories

Higher expenses reduced earnings

Continued store renovations Rigorous management of

allocation of resources

Rebuild the profit structure

Forecast higher sales and earnings for the first time

in 4 years

27

Further refine new business apparel

styles

Create a nationwide

store network

Become first in customer

satisfaction

Anniversaire and Bridal Business


AOKI Holdings Inc.

Anniversaire and Bridal Business: Features and Position within Industry

Provides "Anniversaire"-style weddings mainly in major cities

The wedding and reception/party market:

¥1,409 billion Guesthouse wedding market share: 20.3%

Sources: Wedding Industry 2017, Zexy Wedding Magazine Trend Survey 2017

■Market size

■Manage 14 facilities and 42 halls

Wedding hall and consultation division sales: No.4 in the industry

“35th Service Industry Comprehensive Survey” Nikkei MJ, November 1, 2017

■Industry position

Nagano

Hills Yokohama,

MINATO MIRAI YOKOHAMA

Fukuoka

Kobe Shirakabe Osaka, Esaka

Kashiwa

Omotesando, Toyosu,

Tokyo Bay, Tachikawa

Omiya

Metro area: 8 facilities

Kansai area: 3 facilities

29

AOKI Holdings Inc.

10,000

10,500

11,000

11,500

12,000

12,500

13,000

13,500

Sales and earnings increased as number of couples married increased

30

Anniversaire and Bridal Business: First Half of FY3/18 Review of Operations

1H FY3/18

YoY % % to sales

Sales 13,187 102.2 100.0

Gross profit 3,555 107.3 27.0

SG&A expenses 2,608 105.1 19.8

Operating profit 947 114.0 7.2

(Millions of yen)

0

100

200

300

400

500

600

700

800

900

1,000

Sales up 2.2% YoY


No. of couples married increased by 78 YoY

• Increased marketing activities, mainly using the Internet

• Fairs, special events and other activities increased the number of preliminary visits by people looking for a place for a wedding

Average sales per couple decreased by ¥21,000 YoY

• Decline in average no. of guests

Implemented cost controls by taking steps to operate more efficiently

947

831

7.2% 6.4%

13,187

12,908



1H FY3/17 1H FY3/18 1H FY3/17 1H FY3/18

AOKI Holdings Inc. 31 31

Performance benchmarks

1H FY3/17 1H FY3/18 Change YoY %

No. of facilities at period-end 14 14 - -

No. of wedding/reception halls at period-end 42 42 - -

No. of couples married 2,888 2,966 +78 102.7%

Capacity utilization ratio 57.3% 59.8% +2.5pt -

Average sales per couple (thousands of yen) 4,413 4,392 -21 99.5%

Average no. of guests 73.7 72.5 -1.2 98.4%

Anniversaire and Bridal Business: First Half of FY3/18 Review of Operations

AOKI Holdings Inc.

20,000

22,000

24,000

26,000

28,000

Forecast sales and profits increase due to increases in the number of couples marrying

Anniversaire and Bridal Business: FY3/18 Full-year Forecast

32

Sales up 3.1% YoY


Initiatives to increase average sales per couple

• Increase the average number of wedding guests

• Create new products and services that enhance the appeal of wedding ceremonies and receptions and provide more value to these events

More actions to translate preliminary visits into firm wedding orders

• More renovations, decorations and other improvements

• Strengthen promotions for Proposal Plan to create new ways to attract customers

• Create new ideas for wedding reception formats

• Sales activities emphasizing the powerful ANNIVERSAIRE brand

(Millions of yen)

FY3/18 Forecast

YoY % % to sales

Sales 27,700 103.1 100.0

Gross profit 8,100 108.1 29.2

SG&A expenses 5,300 112.0 19.1



10.3% 10.1%

2,760 2,800

26,860

27,700

FY3/17 FY3/18

Forecast YoY change Vs. initial forecast

No. of couples married/ planned for marrying

6,016 6,157 +141 +80

Average sales per couple (thousands of yen)

4,412 4,445 +33 -75


(Millions of yen)

(Millions of yen)

Entertainment Business


AOKI Holdings Inc.

COTE D'AZUR, a karaoke and party facility that draws

inspiration from the "paradise-on-earth" coastal region of the same name in southern France, provides a refreshing

and relaxing atmosphere filled with song and conversation

34

Karaoke Facility Operations: Facility Types

Facility features: Facilities based on a clear concept

Regular room Ladies’ room Family room

Party room

Various types of "communication space"

Japanese room Online darts

Special rooms equipped for extra needs

VIP room Live room Stage room Super stage room

AOKI Holdings Inc.

6,500

7,000

7,500

8,000

8,500

9,000

9,500

Small increase in sales but lower existing store sales and higher cost of sales reduced earnings

35

1H FY3/18

YoY % % to sales

Sales 8,939 100.9 100.0

Gross profit 987 94.4 11.0

SG&A expenses 1,014 100.6 11.3

Operating profit -26 - -

Sales up 0.9% YoY

New store openings particularly in front of train stations: 4

Sales benefited from renovations at 19 locations

Purchase of the latest karaoke equipment attracted more customers (+2.5%)

Operating loss: -¥64 million YoY

Decrease in existing-store sales: -0.5%

Gross profit margin: -0.8pt YoY

• Higher store personnel expenses

(Millions of yen)

-50

-40

-30

-20

-10

0

10

20

30

40

50

38

-26

8,856 8,939

Pokémon meals

Karaoke Facility Operations: First Half of FY3/18 Review of Operations

Sales Operating profit


1H FY3/17 1H FY3/18 1H FY3/17 1H FY3/18

AOKI Holdings Inc.

Conditions at Existing Stores

Karaoke Facility Operations: First Half of FY3/18 Review of Operations

36

Oct

2016

Nov

2016

Dec

2016

Jan

2017

Feb

2017

Mar

2017

Apr

2017

May

2017

Jun

2017

Jul

2017

Aug

2017

Sep

2017 First-half

Oct 2017

Existing-store sales (%) -2.9 -7.3 -4.9 -3.2 -1.8 3.1 -2.8 -2.2 0.3 -3.7 4.2 0.6 -0.5 -3.2

No. of customers (%) -1.1 -5.5 -3.4 -0.8 0.0 3.6 0.0 -0.5 3.1 0.8 7.4 3.8 2.5 1.1

Sales per customer (%) -1.9 -1.9 -1.6 -2.5 -1.9 -0.5 -2.7 -1.7 -2.7 -4.4 -3.0 -3.0 -2.9 -4.3


+1.2 -0.7 +1.3 +0.6 +1.2 -0.2 +0.8 +1.8 +0.6 +2.3 0.0 0.0 - -0.7

-15

-10

-5

0

5

10

15


Sales

Customers

Sales per customer

(%)

FY3/17 FY3/18

Existing-store sales down 0.5%

Purchase of the latest karaoke equipment increased the number of customers but sales per customer decreased because of fewer nighttime customers.


AOKI Holdings Inc.

17,500

17,750

18,000

18,250

18,500

18,750

19,000

500

550

600

650

700

750

800

850

900

950

Sales

Karaoke Facility Operations: FY3/18 Full-year Forecast Forecast sales and earnings to increase due to contributions from newly opened stores and effective cost-cutting measures

37

(Millions of yen)

FY3/18 Forecast

YoY % % to sales

Sales 18,800 100.7 100.0

Gross profit 2,860 101.0 15.2

SG&A expenses 1,960 100.8 10.4

Operating profit 900 101.4 4.8

Operating profit/ Operating margin

4.8% 4.8%

18,676

18,800 887

900

Sales up 0.7% YoY


New store openings particularly in front of train stations: 6

Change in existing-store sales

• Introduction of the latest karaoke system

• Renovations: 25 facilities

• Further enrich food and drink menus

Gross profit margin: ±0.0pt YoY

1H results 2H forecast Full-year forecast

Closings 4 2 6

Openings 6 1 7

1H results 2H forecast Full-year forecast

-0.5% 0.4% -0.2%



(Stores)

AOKI Holdings Inc.

Café complex "KAIKATSU CLUB," which draws inspiration from the Asian resort island of Bali, is a "relaxation

convenience store."

We provide "convenient" relaxation space readily accessible to customers.

Facility features: Facilities based on a clear concept

Café Complex Operations: Facility Types

38

Massage seat Reclining seat Full flat seat Sofa seat

Pair flat seat

Online darts

Living room

For friends and couples For singles

For families and groups

Drink bar

Comics, magazines, newspapers

Billiards Industry rank: No.1 "35th Service Industry Comprehensive Survey"

Nikkei MJ, November 8, 2017

AOKI Holdings Inc.

0

200

400

600

800

1,000

1,200

1,400

1,600

8,000

9,500

11,000

12,500

14,000

15,500

17,000

New cafés and existing location sales growth boosted sales but earnings fell due to higher cost of sales

1H FY3/18

YoY % % to sales

Sales 17,273 114.4 100.0

Gross profit 2,718 99.4 15.7

SG&A expenses 1,619 110.8 9.4


Operating profit down 13.7% YoY Gross profit margin: -2.4pt YoY

• Higher store personnel expenses and depreciation • Higher costs due to improvements in amusement

contents and facilities

SG&A expenses: up 10.8% YoY • Higher costs due to facility openings and renovations

Sales up 14.4% YoY New store openings: 19

Higher sales at existing facilities: +1.6% • Successful renovations (18 facilities)

(Set up sections exclusively for women; added booths)

• Further improvement of the food menu

• Installation of new PCs, high-speed Wi-Fi and other improvements made cafés more appealing

(Millions of yen)

39

Sections exclusively for women

8.4%

6.4%

15,094

17,273

1,274

1,099

Café Complex Operations: First Half of FY3/18 Review of Operations



1H FY3/17 1H FY3/18 1H FY3/17 1H FY3/18

AOKI Holdings Inc.

-10

-5

0

5

10


Sales

Customers

Sales per customer

40

Oct

2016

Nov

2016

Dec

2016

Jan

2017

Feb

2017

Mar

2017

Apr

2017

May

2017

Jun

2017

Jul

2017

Aug

2017

Sep

2017 First-half

Oct 2017

Existing-store sales (%) 0.7 -3.8 -2.0 -2.2 -5.6 -0.9 1.4 -1.6 1.6 3.7 2.7 1.8 1.6 0.7

No. of customers (%) 0.0 -3.2 -1.0 -1.0 -4.6 -1.6 0.2 -2.2 0.2 1.8 0.9 -0.2 0.1 -1.3

Sales per customer (%) 0.7 -0.6 -1.1 -1.2 -1.1 0.7 1.2 0.6 1.4 1.9 1.8 2.0 1.5 2.0


+1.2 -0.7 +1.3 +0.6 +1.2 -0.2 +0.8 +1.8 +0.6 +2.3 0.0 0.0 - -0.7

(%)

FY3/17 FY3/18

Existing-store sales up 1.6%

Sales per customer are increasing as customers stay longer because of better services and convenience. Existing-store performance has been solid since June.


Café Complex Operations: First Half of FY3/18 Review of Operations

Conditions at Existing Stores

AOKI Holdings Inc.

16,000

19,000

22,000

25,000

28,000

31,000

34,000

41

Forecast higher sales and profits due to contributions from new cafés and sales growth at existing locations

Sales up 13.0% YoY


New store openings: 22

Change in existing-store sales

• Renovations: 43 (+24 YoY)

(More exclusive area for women; added booths)

• Enlarge the lineup of content

• Upgrade the food and beverage selection

Gross profit margin: -1.1pt YoY • Higher store personnel expenses and

depreciation

• Higher costs due to increase in renovated cafés

SG&A expenses: up 8.3% YoY

1H results

2H forecast

Full-year forecast

YoY change

Vs. initial forecast

19 3 22 -30 +1

1H results 2H

forecast Full-year forecast

1.6% 1.9% 1.7%

(Millions of yen)

FY3/18 Forecast

YoY % % to sales

Sales 34,200 113.0 100.0

Gross profit 5,090 105.2 14.9

SG&A expenses 3,190 108.3 9.3


1,900 1,893

6.3% 5.6%

30,264

34,200

Café Complex Operations: FY3/18 Full-year Forecast



FY3/17 FY3/18 Forecast


(Stores)

Supplementary Documents

Notes on pages 43 and 45: 1. Net income per share: Net income divided by average number of shares outstanding (excluding treasury stock). 2. All amounts are rounded down to million yen. 3. The total operating profit for each segment and operating profit do not match due to inter-segmental adjustments. Please see pages 11 and 17 for the difference.


1H FY3/17 Results

% 1H FY3/18

Results % YoY change YoY %

Sales 82,656 100.0 85,675 100.0 3,019 103.7 Fashion 45,811 100.0 46,298 100.0 486 101.1

Anniversaire/Bridal 12,908 100.0 13,187 100.0 279 102.2 Karaoke 8,856 100.0 8,939 100.0 82 100.9

Café Complex 15,094 100.0 17,273 100.0 2,179 114.4

Gross profit 34,342 41.5 35,006 40.9 663 101.9 Fashion 27,006 59.0 27,552 59.5 545 102.0

Anniversaire/Bridal 3,312 25.7 3,555 27.0 243 107.3 Karaoke 1,046 11.8 987 11.0 -58 94.4

Café Complex 2,736 18.1 2,718 15.7 -17 99.4

SG&A expenses 33,681 40.7 33,646 39.3 -35 99.9 Fashion 28,822 62.9 28,609 61.8 -213 99.3

Anniversaire/Bridal 2,481 19.2 2,608 19.8 126 105.1 Karaoke 1,007 11.4 1,014 11.3 6 100.6

Café Complex 1,461 9.7 1,619 9.4 157 110.8

Operating profit 660 0.8 1,359 1.6 699 205.8 Fashion -1,816 - -1,057 - 759 -

Anniversaire/Bridal 831 6.4 947 7.2 116 114.0 Karaoke 38 0.4 -26 - -64 -

Café Complex 1,274 8.4 1,099 6.4 -175 86.3 Ordinary profit 508 0.6 959 1.1 451 188.7 Profit attributable to owners of parent

152 0.2 163 0.2 10 106.7

Net income per share (yen) 1.72 - 1.87 - 0.15 -

Shares outstanding at period-end (1,000 shares)

88,032 - 86,881 - -1,151 -

First Half of FY3/18 Consolidated Business Results

(Millions of yen unless otherwise stated)



Total Fashion Anniversaire

/ Bridal Karaoke

Café Complex

Total Fashion Anniversaire/

Bridal Karaoke Café Complex

YoY % YoY % YoY % YoY % YoY %

Advertising expenses

4,795 3,505 842 259 108 4,668 97.3 3,312 94.5 861 102.3 267 103.1 141 130.7

Personnel expenses

12,952 10,394 630 483 816 13,184 101.8 10,480 100.8 675 107.1 454 94.0 918 112.6

Rents 7,663 7,731 10 16 30 7,620 99.4 7,734 100.0 11 104.6 15 92.0 30 100.8

Depreciation 1,584 1,228 52 29 21 1,719 108.6 1,354 110.2 51 98.3 28 96.6 26 123.1


Anniversaire/ Bridal

Karaoke

Café Complex Anniversaire/ Bridal Karaoke Café Complex

YoY % YoY % YoY %

Personnel expenses

2,418 2,435 4,226 2,440 100.9 2,484 102.0 4,954 117.2

Rents 999 2,111 2,570 993 99.4 2,171 102.8 3,083 119.9

Depreciation 792 583 868 742 93.7 571 98.1 1,088 125.3

First Half of FY3/18 Major Expenses

SG&A expenses

Major expenses included in cost of sales


Note: The sum of the business segment items does not match the total because the total includes expenses of AOKI Holdings Inc. and inter-segment eliminations.


Note: The ANNIVERSAIRE/Bridal, Karaoke, and Café Complex businesses include the above-stated expenses in cost of sales, in addition to the SG&A expenses in the upper table.


FY3/17 % FY3/18

Initial forecast %

FY3/18 Revised forecast

% YoY change YoY %

Sales 194,046 100.0 200,550 100.0 199,850 100.0 5,803 103.0 Fashion 118,264 100.0 119,900 100.0 119,200 100.0 935 100.8

Anniversaire/Bridal 26,860 100.0 27,800 100.0 27,700 100.0 839 103.1 Karaoke 18,676 100.0 19,000 100.0 18,800 100.0 123 100.7

Café Complex 30,264 100.0 33,900 100.0 34,200 100.0 3,935 113.0 Gross profit 86,315 44.5 88,250 44.0 87,820 43.9 1,504 101.7

Fashion 70,692 59.8 71,700 59.8 71,400 59.9 707 101.0 Anniversaire/Bridal 7,493 27.9 8,290 29.8 8,100 29.2 606 108.1

Karaoke 2,832 15.2 2,875 15.1 2,860 15.2 27 101.0 Café Complex 4,838 16.0 4,965 14.6 5,090 14.9 251 105.2

SG&A expenses 71,868 37.0 73,750 36.8 73,320 36.7 1,451 102.0 Fashion 62,524 52.9 63,200 52.7 62,900 52.8 375 100.6

Anniversaire/Bridal 4,732 17.6 5,490 19.7 5,300 19.1 567 112.0 Karaoke 1,944 10.4 1,975 10.4 1,960 10.4 15 100.8

Café Complex 2,945 9.7 3,065 9.0 3,190 9.3 244 108.3 Operating profit 14,447 7.4 14,500 7.2 14,500 7.3 52 100.4

Fashion 8,167 6.9 8,500 7.1 8,500 7.1 332 104.1 Anniversaire/Bridal 2,760 10.3 2,800 10.1 2,800 10.1 39 101.4

Karaoke 887 4.8 900 4.7 900 4.8 12 101.4 Café Complex 1,893 6.3 1,900 5.6 1,900 5.6 6 100.4

Ordinary profit 13,895 7.2 14,000 7.0 14,000 7.0 104 100.8 Profit attributable to owners of parent

7,355 3.8 7,600 3.8 7,600 3.8 244 103.3

Net income per share (yen) 83.38 - 87.11 - 87.40 - 4.02 - Shares outstanding at period-end (1,000 shares)

87,245 - 87,245 - 86,881 - -364 -

Full-year FY3/18 Consolidated Forecast (Millions of yen unless otherwise stated)



Total Fashion Anniversaire

/ Bridal Karaoke

Café Complex

Total Fashion Anniversaire/

Bridal Karaoke Café Complex

YoY % YoY % YoY % YoY % YoY %

Advertising

expenses 12,997 10,579 1,516 447 228 13,432 103.3 10,765 101.8 1,750 115.4 473 105.7 265 116.1

Personnel expenses

26,077 21,116 1,213 923 1,587 27,243 104.5 21,780 103.1 1,313 108.2 895 96.9 1,812 114.1

Rents 15,403 15,608 21 34 60 15,296 99.3 15,510 99.4 22 103.5 33 97.3 60 99.7

Depreciation 3,307 2,587 106 59 42 3,571 108.0 2,822 109.1 105 98.3 61 103.6 50 119.2


Anniversaire / Bridal

Karaoke Café Complex Anniversaire / Bridal Karaoke Café Complex

YoY % YoY % YoY %

Personnel expenses

4,634 4,904 8,612 4,765 102.8 4,970 101.3 9,820 114.0

Rents 1,987 4,298 5,390 1,977 99.5 4,370 101.7 6,255 116.0

Depreciation 1,585 1,158 1,830 1,494 94.2 1,175 101.4 2,235 122.1

Full-year FY3/18 Major Expenses

SG&A expenses

Major expenses included in cost of sales



Note: The sum of the business segment items does not match the total because the total includes expenses of AOKI Holdings Inc. and inter-segment eliminations.

Note: The ANNIVERSAIRE/Bridal, Karaoke, and Café Complex businesses include the above-stated expenses in cost of sales, in addition to the SG&A expenses in the upper table.


First half YoY % Second half YoY % Full year YoY %

Number of units sold (in ten thousands)

FY3/18 44.6 97.1

FY3/17 46.0 105.2 87.4 104.2 133.3 104.6

Unit price (thousands of yen)

FY3/18 25.8 102.0

FY3/17 25.3 96.2 26.2 97.8 26.1 97.0

1Q 2Q First half Second

half Full year Apr. May Jun. Jul. Aug. Sep.

FY3/18 -1.6 -7.5 -5.4 -4.9 3.4 1.0 5.8 3.4 -1.8

FY3/17 7.6 0.5 6.5 4.6 11.4 -2.0 0.2 4.1 4.4 3.2 3.6



Number of customers

FY3/18 -9.2 -13.2 -9.8 -10.9 0.5 -2.6 0.5 -0.4 -7.1

FY3/17 11.4 4.1 3.2 5.9 3.6 -9.3 -0.6 -1.4 3.1 -0.6 1.1

Sales per customer

FY3/18 8.4 6.6 4.9 6.7 2.8 3.7 5.3 3.8 5.7

FY3/17 -3.4 -3.5 3.2 -1.2 7.6 8.0 0.8 5.6 1.3 3.9 2.5

Reference: First Half of FY3/18 Fashion Business Performance

(1) Change in existing-store sales

(2) Change in number of customers and sales per customer at existing stores

(3) Number of units sold and unit prices of suits

(%)

(%)


1H FY3/17 Results % 1H FY3/18 Results % YoY change YoY %

Heavy clothing 17,278 37.7 17,486 37.8 208 101.2

Medium clothing 5,383 11.8 5,199 11.2 -184 96.6

Light clothing 15,296 33.4 15,277 33.0 -18 99.9

Ladies’ clothing 6,632 14.5 7,116 15.4 484 107.3

Other 1,221 2.6 1,218 2.6 -2 99.8

Total 45,811 100.0 46,298 100.0 486 101.1

1H FY3/17 1H FY3/18 YoY change YoY %

346,765 363,439 16,674 104.8

Reference: First Half of FY3/18 Fashion Business Performance

(4) Sales by category

(5) Average total sales area

Definition: Heavy clothing: Suit, formal wear, coat

Medium clothing: Jacket, slacks

Light clothing: Shirt, tie, casual wear, clothing accessories, etc.

Other: Alteration, etc.


(Square meters)


（単位：店） 1H FY3/18

No. of stores opened / closed No. of stores at period-end No. of stores opened / closed No. of stores at period-end

AOKI ORIHICA Total AOKI ORIHICA Total AOKI ORIHICA Total AOKI ORIHICA Total

Hokkaido 23 23 Hokkaido/Tohoku

Gifu 12 1 13 Tokai

Aomori 4 4 Shizuoka 22 3 25

114 Iwate 4 4

60

Aichi /1 /1 /2 51 14 65

Miyagi 9 5 14 Mie 11 11

Akita 1 1 4 4 Shiga 7 2 9 Kinki/ Chugoku Yamagata 3 3 Kyoto /1 /1 4 1 5

Fukushima 7 1 8 Osaka 35 14 49

101 Ibaraki 15 3 18 Kanto Hyogo 12 12 24

Tochigi /1 /1 10 2 12

343

Nara 5 1 6

Gunma 12 12 Hiroshima 5 3 8

Saitama 2/3 /1 2/4 51 14 65 Fukuoka 1 1 20 20 Kyushu

Chiba 1 /1 1/1 44 13 57 Nagasaki 3 3

Tokyo 1 1/2 2/2 72 29 101 Kumamoto 1 1 8 8

37 Kanagawa 1/2 1 2/2 56 22 78 Miyazaki 1 1

Niigata 11 2 13 Koshinetsu/Hokuriku

Kagoshima 5 5

Toyama 9 9 Total 8/8 2/5 10/13 573 142 715

Ishikawa 8 8

60 Fukui 3 3

Yamanashi 6 6

Nagano 21 21

(6) Store network by prefecture


First half 3Q 4Q Second half Full year

Sales

FY3/18 (1H results + 2H revised forecast) -1.8 1.0 1.1 1.1 0.0

FY3/18 (initial forecast) 1.4 1.6 0.2 0.8 1.0

FY3/17 4.4 2.7 3.6 3.2 3.6

Number of customers

FY3/18 (1H results + 2H revised forecast) -7.1 -2.4 -1.4 -1.9 -4.3

FY3/18 (initial forecast) -2.9 -1.4 -0.3 -0.8 -1.8

FY3/17 3.1 2.1 -3.2 -0.6 1.1

Sales per customer

FY3/18 (1H results + 2H revised forecast) 5.7 3.5 2.5 3.0 4.5


FY3/17 1.3 0.6 7.0 3.9 2.5

FY3/17 % FY3/18 Forecast % YoY change %

Heavy clothing 50,021 42.3 50,150 42.1 128 100.3

Medium clothing

9,331 7.9 9,050 7.6 -281 97.0

Light clothing 34,822 29.4 34,800 29.2 -22 99.9

Ladies’ clothing 20,580 17.4 21,700 18.2 1,119 105.4

Other 3,508 3.0 3,500 2.9 -8 99.8

Total 118,264 100.0 119,200 100.0 935 100.8

Reference: FY3/18 Fashion Business Outlook

(1) Change in existing-store sales, number of customers and sales per customer at existing stores

(2) Sales forecast by category

(%)


Definition: Heavy clothing: Suit, formal wear, coat Light clothing: Shirt, tie, casual wear, clothing accessories, etc. Medium clothing: Jacket, slacks Other: Alteration, etc.


1H FY3/17 1H FY3/18 YoY change

Existing stores

Room charges 52.3 46.8 -5.5pt

Food and beverage sales 47.2 52.7 +5.5pt

Other sales 0.5 0.5 ±0pt



Number of customers

FY3/18 0.0 -0.5 3.1 0.8 0.8 7.4 3.8 4.0 2.5

FY3/17 -3.1 -8.4 -5.6 -5.8 -3.1 -9.1 -1.4 -4.8 -5.3 -1.2 -3.2

Sales per customer

FY3/18 -2.7 -1.7 -2.7 -2.4 -4.4 -3.0 -3.0 -3.5 -2.9

FY3/17 3.6 -0.2 0.4 1.2 2.8 -1.2 -0.7 0.2 0.7 -1.8 -0.6



FY3/18 -2.8 -2.2 0.3 -1.6 -3.7 4.2 0.6 0.4 -0.5

FY3/17 0.3 -8.6 -5.2 -4.6 -0.5 -10.2 -2.1 -4.6 -4.6 -3.0 -3.8

Reference: First Half of FY3/18 Entertainment Business Performance

(1) Karaoke facility operations: Change in existing-store sales

(2) Karaoke facility operations: Change in number of customers and sales per customer at existing stores

(3) Karaoke facility operations: Percentage to existing-store sales

(%)

(%)

(%)


1H FY3/17 1H FY3/18 YoY change

Existing stores

Room charges 83.8 83.7 -0.1pt

Food and beverage sales 14.7 14.6 -0.1pt

Other sales 1.5 1.7 +0.2pt



FY3/18 1.4 -1.6 1.6 0.4 3.7 2.7 1.8 2.7 1.6

FY3/17 8.1 6.7 3.3 6.0 4.1 -4.3 -0.4 -0.4 2.6 -2.3 0.2



Number of customers

FY3/18 0.2 -2.2 0.2 -0.7 1.8 0.9 -0.2 0.8 0.1

FY3/17 7.7 5.9 3.0 5.5 2.9 -3.3 0.2 -0.2 2.5 -1.8 0.3

Sales per customer

FY3/18 1.2 0.6 1.4 1.0 1.9 1.8 2.0 1.9 1.5

FY3/17 0.3 0.7 0.2 0.5 1.1 -1.0 -0.6 -0.2 0.1 -0.4 -0.2

Reference: First Half of FY3/18 Entertainment Business Performance

(4) Café complex operations: Change in existing-store sales

(5) Café complex operations: Change in number of customers and sales per customer at existing stores

(6) Café complex operations: Percentage to existing-store sales

(%)

(%)

(%)


（単位：店）

1H FY3/18

No. of stores opened / closed No. of stores at period-end No. of stores opened / closed No. of stores at period-end

COTE D'AZUR

KAIKATSU CLUB

Total COTE

D'AZUR KAIKATSU

CLUB Total

COTE D'AZUR

KAIKATSU CLUB

Total COTE

D'AZUR KAIKATSU

CLUB Total

Hokkaido 2 2 8 8 Hokkaido/ Tohoku

Gifu 8 8 Tokai

Iwate 2 5 7 Shizuoka /1 /1 7 12 19

78 Miyagi 6 6 12

45

Aichi 1 1 11 30 41 Akita 1 3 4 Mie 1 9 10

Yamagata 1 5 6 Shiga 1 1 1 5 6 Kinki/ Chugoku Fukushima 1 7 8 Kyoto 2 2 3 11 14

Ibaraki 1 1 4 13 17 Kanto Osaka /2 6 6/2 13 31 44

117

Tochigi 1 5 6

209

Hyogo 1/2 1/2 5 16 21 Gunma 1 8 9 Nara 2 3 5 Saitama 6 25 31 Wakayama 3 3

Chiba 11 22 33 Tottori 1 1 Tokyo 1 1 36 18 54 Shimane 2 2

Kanagawa 1 1 37 22 59 Okayama 2 6 8 Niigata 1 1 3 9 12 Koshinetsu/

Hokuriku

Hiroshima /1 /1 9 9 Toyama 2 2 4 Yamaguchi 4 4 Ishikawa 5 4 9

53

Tokushima 2 2 Kyushu/ Shikoku/Okinawa

Fukui 6 1 7 Kagawa 4 4 Yamanashi 2 3 5 Ehime 1 1 1 1

Nagano 1/2 1/2 10 6 16 Fukuoka 1/1 1/1 3 9 12

43

Saga 2 2 Nagasaki 3 3

Kumamoto 1 1 6 6 Oita 3 3

Miyazaki 4 4 Kagoshima 1 1 4 4 Okinawa 1 1 2 2

Total 4/6 19/3 23/9 183 362 545

(7) Store network by prefecture



Sales

FY3/18 (1H results + 2H revised forecast) -0.5 -0.8 1.7 0.4 -0.2

FY3/18 (initial forecast) -0.7 -1.3 2.4 0.5 -0.1

FY3/17 -4.6 -5.0 -0.6 -3.0 -3.8

Number of customers


FY3/18 (initial forecast) 0.7 -0.7 3.1 1.1 0.9

FY3/17 -5.3 -3.3 1.0 -1.2 -3.2

Sales per customer

FY3/18 (1H results + 2H revised forecast) -2.9 -4.0 -1.0 -2.6 -2.7

FY3/18 (initial forecast) -1.4 -0.6 -0.6 -0.6 -1.0

FY3/17 0.7 -1.8 -1.6 -1.8 -0.6


Sales


FY3/18 (initial forecast) -1.0 -0.6 2.6 1.0 0.0

FY3/17 2.6 -1.7 -2.8 -2.3 0.2

Number of customers


FY3/18 (initial forecast) -1.1 -1.1 2.2 0.6 -0.3

FY3/17 2.5 -1.4 -2.3 -1.8 0.3

Sales per customer

FY3/18 (1H results + 2H revised forecast) 1.5 -1.3 1.3 0.0 0.8


FY3/17 0.1 -0.3 -0.5 -0.4 -0.2

Reference: FY3/18 Entertainment Business Outlook

(1) Karaoke facility operations: Change in existing-store sales, number of customers and sales per customer at existing stores

(2) Café complex operations : Change in existing-store sales, number of customers and sales per customer at existing stores

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Date post:	09-Jul-2020
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