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

Supplementary

Materials

Fiscal Year Ended March 31, 2024

May 10, 2024

AOKI Holdings Inc.

Contents

FY3/24 Review of Operations

3

FY3/25 Earnings Forecast

8

			Supplementary Documents	12

1. All monetary figures are rounded down.
2. The Accounting Standard for Revenue Recognition has not been retroactively applied to fiscal years before FY3/21.
3. Sales and earnings of RUNSYSTEM, which became a subsidiary in June 2022, are included beginning with the second quarter of FY3/23.
4. We changed the method of calculating segment sales and profits/losses in the FY3/24 , for the FY3/23 we have listed figures prepared based on the changed calculation method.

AOKI Holdings Inc.

2

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.

4

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.

5

Consolidated Earnings Trends from FY3/14 to FY3/24

(Billions of yen)		Sales		Operating profit/loss		Operating margin	¥187.7billion
				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%
									¥13.8billion
			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.	6

FY3/24 Results by Segment

		Existing-store sales remained strong due to increase in sales per customer, resulting in third
Fashion		consecutive year of increase in sales and profits
	• Change in existing-store sales: up 5.7% (forecast: up 3.0%)
		Change in existing-store sales per customer: up6.2%(forecast: up2.2%)
		• Stores opened: 6 stores; closed: 9 stores
		The number of customers increased due to social and economic activities, Record-high operating profit
Entertainment		• 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
10.2
+9.0%

	75.5
+6.6%

+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 Reasing

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

AOKI Holdings Inc.

7

FY3/25 Earnings Forecast

FY3/25 Earnings Forecast

Business climate

• The diversification of customer needs and changes of consumption behavior
• Depreciation of the yen and rise in raw material prices
• Shortage of employees and wage increases
• Increasing awareness of the importance of sustainability

AOKI Group

• Developing products and services that meet customer needs and changing store models
• Appropriate measures as needed in response to rising costs and implement cost controls
• Use DX for store operation innovations and improvements
• Development of environmentally friendly products and implementation of various efforts

Sales	191.5 billion yen	Operating	15.0 billion yen
	(up 2.0% YoY)	profit	(up 8.2% YoY)

Ordinary	14.6 billion yen
profit	(up 10.3% YoY)

Profit attributable	8.0 billion yen
to owners of parent	(up 5.6% YoY)

AOKI Holdings Inc.

9

Consolidated Forecast

					(Millions of yen)
	Account/Period	FY3/24	FY3/25	Change	YoY %
	(Forecast)
	Sales	187,716	191,500	3,783	102.0
	Gross profit	76,929	80,100	3,170	104.1
	Gross profit margin	41.0%	41.8%	+0.8pt
	Selling, general and administrative	63,069	65,100	2,030	103.2
	expenses
	Operating profit	13,860	15,000	1,139	108.2
	Operating margin	7.4%	7.8%	+0.4pt
	Non-operating profit	329	250	-79	75.8
	Non-operating expenses	954	650	-304	68.1
	Ordinary profit	13,235	14,600	1,364	110.3
	Extraordinary gains	1,003	-	-1,003	-
	Extraordinary losses	1,798	1,400	-398	77.8
	Profit attributable to owners of parent	7,574	8,000	425	105.6
	Net income per share (yen)	90.03	95.21	5.18	-

AOKI Holdings Inc.

10