Performance Briefing for the First Half of the Fiscal Year Ending - - PowerPoint PPT Presentation

SLIDE 1

Performance Briefing

for the First Half of the Fiscal Year Ending March 31, 2011 November 18, 2010 AOKI Holdings Inc.

SLIDE 2

2 AOKI Group's Business Portfolio Management Management

Contents

Fashion Business Performance and Forecast

Anniversaire and Bridal Business Performance and Forecast

Entertainment Business Performance and Forecast First Half of FY3/11 Review of Operations FY3/11 Full-year Sales and Earnings Forecasts

Supplementary Documents

3 4-5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 24 25 26 First Half of FY3/11 Consolidated Business Results First Half of FY3/11 SG&A Expenses Full Year FY3/11 Consolidated Forecast Full Year FY3/11 SG&A Expenses Forecast Reference: First Half of FY3/11 Fashion Business Performance Reference: FY3/11 Fashion Business Outlook 27 28 30 31 32 33 36 37 40 41 42 43 44 45 46 47 48 49 50 53 Consolidated Profit and Loss FY3/11 First-half Financial Highlights Sales and Operating Profit by Business Segment Major Changes in Consolidated Balance Sheets Consolidated Statements of Cash Flows Number of Stores Opened/Closed Consolidated Forecast Forecast for Sales and Operating Profit by Business Segment Outlook for Store Openings/Closings Industry Trends and Position within Industry First Half of FY3/11 Review of Operations Analytic Indices FY3/11 Full-year Forecast Towards growth strategy Industry Trends and Position within Industry First Half of FY3/11 Review of Operations: Total First Half of FY3/11 Review of Operations: Karaoke rooms Business Forecast for FY3/11: Karaoke rooms First Half of FY3/11 Review of Operations: Café complex Business Forecast for FY3/11: Café complex First Half of FY3/11 Review of Operations Existing-store Sales, Customer Volume and Sales per Customer AOKI: First-half Initiatives and Performance ORIHICA: First-half Initiatives and Performance AOKI: Second Half of FY3/11 Initiatives ORIHICA: Second Half of FY3/11 Initiatives FY3/11 Earnings Forecast ORIHICA: Toward further growth through aggressive store openings Current Status of Business Portfolio

SLIDE 3

AOKI Holdings' Business Portfolio Management

SLIDE 4

4 4

Business Portfolio Comprised of Three Businesses

Fashion Business

Anniversaire and Bridal Business

Entertainment Business

AOKI

"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.

ORIHICA

Chain of stores primarily in shopping centers. Offer new "business" and "business-to- casual" styles targeting men and women in their 20's to 30's.

ANNIVERSAIRE OMOTESANDO

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.

Completed in 1998 based on the concept of "anniversary." A hall with a chapel, party space, and shops for all ceremonious

• ccasions. Located in the center of

the fashionable Omotesando

• district. Well-known for hosting the

weddings of the famous, has become the top brand for weddings.

WEDDING VILLAGE, PARTIRE GEIHINKAN

Offering entertainment and relaxation

Provides customers opportunities for rest, relaxation and entertainment in a variety of welcoming environments. Top in the café complex industry.

COTE D'AZUR

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 (photo on right: Shimokitazawa Store VIP room).

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. KAIKATSU SQUARE (photo on the left) in Kita-yamata, Yokohama, offers a fitness club, bedrock baths, karaoke space, and simulated golf range. Chain of primarily free- standing stores, although we have recently begun to

• pen stores in central Tokyo

as well (photo: AOKI GINZA Store). Features carefully planned products and stylists with highly-specialized knowledge that offer total coordination to customers. Guesthouse wedding facility with a European style chapel and garden filled with flowers and

• greenery. The Group operates 11 such facilities nationwide.

These facilities are our answer to customers who want a unique wedding that reflects their individuality. * The name of the facility will be changed to ANNIVERSAIRE from January 2011

SLIDE 5

5

FY3/11 First-half Financial Highlights

The Fashion Business returned to profitability Sharp increase in group-wide

• perating profit

First-half Operating Profit

894 1,012 901 786 597

• 671
• 1,000
• 500

500 1,000 1,500 2,000 (Millions of yen)

1H FY3/10 1H FY3/11 1,250 2,132

500 1,000 1,500 2,000 2,500

1H FY3/10 1H FY3/11

(Millions of yen)

New store openings contributed to greater sales in the Entertainment Business

First-half Sales

Fashion Entertainment Anniversaire and Bridal

35,832 35,466 11,263 10,990 10,825 12,163

10,000 20,000 30,000 40,000 50,000 60,000 70,000

1H FY3/10 1H FY3/11

(Millions of yen)

57,908 58,603

• 1.0%
• 2.4%

+12.4%

597 894

* Segment figures for the previous term have been recalculated based on this term's classifications.

SLIDE 6

First Half of FY3/11 Review of Operations

SLIDE 7

7

Consolidated Profit and Loss

(Millions of yen)

Account/Period 1H FY3/10 1H FY3/11 Change YoY % Major components

Sales

57,908 58,603 694 101.2

Increase in existing-store sales at AOKI and ORIHICA, and contributions from new stores in the Entertainment Business

Gross profit Gross profit margin

25,639 44.3% 26,231 44.8% 592 +0.5pt 102.3

1.1pt improvement at AOKI and ORIHICA

Selling, general and administrative expenses

24,388 24,098

• 290

98.8

Decrease in M/X

Operating profit Operating margin

1,250 2.2% 2,132 3.6% 882 +1.4pt 170.6

Large contribution from Fashion Business

Non-operating profit

1,109 1,272 162 114.7

Non-operating expenses

651 674 23 103.5

Ordinary income

1,708 2,730 1,022 159.8

Extraordinary gains

200 28

• 171

14.4

Extraordinary losses

748 1,712 963 228.9

Asset retirement obligation of 1,466 million yen

Net income

918 446

• 471

48.6

Depreciation: ¥2,643 million (including lease assets of ¥351 million) Fashion Business YoY existing-store sales: +2.2% for 1H

SLIDE 8

8

1H FY3/10

FY3/11 First-half Financial Highlights

Slight increase in sales, and large increase in profits,

• n strong existing-store sales in Fashion Business

358 343 354 112 112 109 58 64 61 49 58 60 100 200 300 400 500 600 700

1H FY3/10 1H FY3/11 Plan 1H FY3/11 Results

Sales Operating profit 577 586 579

108 122 121

1H FY3/11 Plan 1H FY3/11 Results (億円)

(Hundred million yen)

Fashion Anniversaire and Bridal Entertainment Karaoke Café complex

*Segment figures for the previous term have been recalculated based on this term's classifications.

(Hundred million yen)

121 5 10 9 7 4 4 3 3 4

• 6
• 10
• 5

5 10 15 20 25

12 14 21

9 7 8 5

SLIDE 9

9

Sales and Operating Profit by Business Segment

(Millions of yen)

[Sales by business segment] [Operating profit by business segment]

(Millions of yen)

Business segment

1H FY3/10 1H FY3/11 Change YoY % Major components

57,908 58,603 694 101.2 Fashion 35,832 35,466

• 366

99.0

Decrease in sales due to the closure of M/X stores

Anniversaire and Bridal 11,263 10,990

• 272

97.6

Decrease in the number of couples married

Entertainment (Total) 10,825 12,163 1,337 112.4

Contribution from 17 new facilities

(of which) Karaoke 5,832 6,110 278 104.8 (of which) Café Complex 4,993 6,052 1,058 121.2 Business segment

1H FY3/10 1H FY3/11 Change YoY %

1,250 2,132 882 170.6 Fashion

• 671

597 1,269

• Anniversaire and Bridal

1,012 786

• 226

77.6 Entertainment (Total) 901 894

• 7

99.2 (of which) Karaoke 539 404

• 135

75.0 (of which) Café Complex 362 489 127 135.3 Inter-segment transactions 7

• 145
• 153
• *Segment figures for the previous term have been recalculated based on this term's classifications.

Total Total

SLIDE 10

10

Major Changes in Consolidated Balance Sheets

(Millions of yen) Account/Period 1H FY3/11 FY3/10 Change Major components Current assets 42,449 43,424

• 975 Decrease in accounts receivable-trade, etc.

Cash in hand and in banks 18,146 16,997 1,148 Increase in long-term debt, etc. Inventories 16,411 15,684 726 Increase due to openings of new stores Fixed assets 118,023 115,764 2,258 Tangible fixed assets 79,449 77,168 2,280 Increase due to openings of new stores and asset

retirement obligations

Intangible fixed assets 4,016 3,890 126 Investments and other assets 34,557 34,706

• 148

Total assets 160,472 159,189 1,283 Current liabilities 27,807 38,503

• 10,695 Repayment of short-term debt and decreases in

income taxes paid, etc.

Notes and accounts payable- trade 11,312 12,340

• 1,027

Long-term liabilities 35,648 23,269 12,379 Debt 24,949 15,497 9,452 Long-term debt for capital investment Total liabilities 63,456 61,772 1,683 Common stock 23,282 23,282

• Capital surplus

24,788 24,788

• Retained earnings

55,498 55,692

• 193 Dividends paid, etc.

Treasury stock

• 7,079
• 7,078
• 1

Unrealized gain on securities

• 133

100

• 234

Stock acquisition rights 658 630 28 Total net assets 97,015 97,416

• 400

Total liabilities and net assets 160,472 159,189 1,283

SLIDE 11

11

Consolidated Statements of Cash Flows

(Millions of yen) Account/Period 1H FY3/10 1H FY3/11 Change Major components Cash flows from

• perating activities
• 4,625

3,242 7,867

Decrease in income taxes paid of ¥2,751 million Decrease in accounts payable-trade of ¥2,174 million Asset retirement obligations of 1,466 million yen

Cash flows from investing activities

• 1,851
• 3,201
• 1,350

Increase in acquisition of tangible fixed assets of ¥-511 million Decrease in gain on sale of investment securities of ¥-300 million

Cash flows from financing activities 1,541 1,108

• 433

Long-term debt of ¥13,000 million Decrease in short-term debt of ¥-12,400 million Increases in repayments of corporate bonds and long-term debt of ¥-855 million

Change in cash and cash equivalents

• 4,934

1,148 6,082 Beginning balance 14,310 16,997 2,686 Ending balance 9,375 18,146 8,770

SLIDE 12

12

Number of Stores Opened/Closed

*1 Includes 36 M/X stores *2 Includes 1 M/X store *3 Includes 2 M/X stores *4 Includes KAIKATSU FITNESS CLUB Segment Stores/facilities 1H FY3/10 1H FY3/11 Number of Stores Opened Closed Number of Stores Opened Closed

Fashion AOKI 424 14 3 428 1 4 ORIHICA 49 4

• 57

8 3 Anniversaire and Bridal ANNIVERSAIRE, WEDDING VILLAGE, PARTIRE GEIHINKAN 12

• 12
• Karaoke

COTE D'AZUR 111 4

• 121

8 5 Café Complex KAIKATSU CLUB,

• ther*4

118 9 1 142 9

• Total

750 *1 31 5 *2 760 26 14 *3 Capital expenditures 3,802 4,156 Capital expenditures: 1H FY3/11: Fashion 1,178 Anniversaire/Bridal 795 Karaoke 1,027 Café Complex 1,020 1H FY3/10: Fashion 1,962 Anniversaire/Bridal 359 Karaoke 599 Café Complex 852 Capital expenditures: 1H FY3/11: Fashion 1,178 Anniversaire/Bridal 795 Karaoke 1,027 Café Complex 1,020 1H FY3/10: Fashion 1,962 Anniversaire/Bridal 359 Karaoke 599 Café Complex 852

(Millions of yen excluding number of stores)

SLIDE 13

FY3/11 Full-year Sales and Earnings Forecasts

SLIDE 14

14

Assumptions

(Millions of yen)

Consolidated Forecast

Account/Period FY3/10 FY3/11 (forecast) Change YoY % Major components

Sales

131,124 130,300

• 824

99.4

M/X store closings generally offset by new store openings

Gross profit Gross profit margin

60,637 46.2% 60,450 46.4%

• 187

+0.2pt 99.7

0.4pt improvement at AOKI and ORIHICA

Selling, general and administrative expenses

50,683 50,150

• 533

98.9

Decrease in M/X

Operating profit Operating margin

9,954 7.6% 10,300 7.9% 345 +0.3pt 103.5

Improvement due to closure of M/X business

Non-operating profit

2,267 2,430 162 107.2

Non-operating expenses

1,471 1,530 58 104.0

Ordinary income

10,750 11,200 449 104.2

Extraordinary gains

199 20

• 179

10.0

Extraordinary losses

4,262 3,520

• 742

82.6

Includes impact from asset retirement

• bligations of ¥1,466 million

Net income

3,618 4,000 381 110.5

Depreciation: ¥5,400 million (including lease assets of ¥800 million) Fashion Business YoY existing-store sales: +2.2% for 1H, -1.9% for 2H, -0.2% for full year

SLIDE 15

Business segment FY3/10 FY3/11 (forecast) Change YoY %

Total 9,954 10,300 345 103.5 Fashion 5,794 6,700 905 115.6 Anniversaire and Bridal 2,261 2,000

• 261

88.5 Entertainment (Total) 1,941 1,900

• 41

97.9 (of which) Karaoke 1,524 1,336

• 188

87.6 (of which) Café Complex 417 564 146 135.2 Inter-segment transactions

• 42
• 300
• 257
• 15

(Millions of yen)

[Sales by business segment]

( Millions of yen )

Forecast for Sales and Operating Profit by Business Segment

[Operating profit by business segment]

Business segment FY3/10 FY3/11 (forecast) Change YoY %

Total 131,124 130,300

• 824

99.4 Fashion 85,910 82,500

• 3,410

96.0 Anniversaire and Bridal 22,794 22,820 25 100.1 Entertainment (Total) 22,436 25,000 2,563 111.4 (of which) Karaoke 12,437 13,040 602 104.8 (of which) Café Complex 9,998 11,960 1,961 119.6 *Segment figures for the previous term have been recalculated based on this term's classifications.

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16

Outlook for Store Openings/Closings

Business segment Stores/facilities FY3/10 FY3/11 (forecast)

Number of Stores Opened Closed Number of Stores To be

• pened

To be closed

Fashion AOKI 431 23 5 431 4 4 ORIHICA 52 10 3 69 20 3 Anniversaire and Bridal ANNIVERSAIRE 12

• 12
• Karaoke

COTE D'AZUR 118 13 2 129 16 5 Café Complex KAIKATSU CLUB,

• ther*3

133 25 2 154 21

• Total

748 *1 71 47 *2 795 61 14 *1 Capital expenditures 11,230 9,850

*1 Includes 2 M/X stores *2 Includes 35 M/X stores *3 Includes KAIKATSU FITNESS CLUB

Capital expenditures: FY3/11 (forecast): Fashion 2,100 Anniversaire/Bridal 2,800 Karaoke 2,607 Café Complex 2,110 FY3/10: Fashion 2,896 Anniversaire/Bridal 4,555 Karaoke 1,602 Café Complex 2,126

(Millions of yen excluding number of stores)

SLIDE 17

Fashion Business

First-half of FY3/11 Performance and Full-year Forecast

SLIDE 18

18

Sales declined slightly as the closure of M/X stores last year outweighed the increase in existing-store sales, but profits rose sharply due to an improvement in the gross profit margin Fashion Business-First Half of FY3/11 Review of Operations

Sales down 1.0% YoY

Sales (AOKI+ORIHICA) up 4.6% YoY

• Change in existing-store sales: +2.2%
• Strong sales of functional and Cool Biz products

New store openings

• AOKI: 1 store
• ORIHICA: 8 stores

Sales declined due to closure of M/X stores

• Impact: approx. ¥1,900 million

Sales Operating profit

( Operating profit: Millions of yen) ( Sales: Millions of yen)

10,000 20,000 30,000 40,000

• 1,000

35,832 35,466

• 671

1,000

Operating profit: Improved ¥1,269 million

Gross profit margin up 2.5 points YoY to 59.9%

(AOKI+ORIHICA: +1.1pt )

SG&A expenses down 2.8% YoY Elimination of operating losses present in the M/X

business in the same period of last year thanks to store closures (approx. ¥ 560 million)

1H FY3/10 1H FY3/11

597 34,300

• 90

1H FY3/11 Plan

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19

Fashion Business: Existing-store Sales, Customer Volume and Sales per Customer

• 20.0
• 15.0
• 10.0
• 5.0

0.0 5.0 10.0 15.0 20.0

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

Sales Customers Sales per customer

FY3/11 YoY Change in Monthly Performance

FY3/10 (%)

Strong sales of "Premium Wash Series" Strong sales of "Premium Wash Series"

Existing-store sales up 2.2% Existing-store sales up 2.2%

Oct 2009 Nov 2009 Dec 2009 Jan 2010 Feb 2010 Mar 2010 Apr 2010 May 2010 Jun 2010 Jul 2010 Aug 2010 Sep 2010 First- half Oct 2010 Existing-store sales (%)

• 4.2
• 10.6
• 3.2
• 3.3

+4.7 +0.2 +0.3 +3.0 +0.2 +3.9 +6.4 +3.4 +2.2 +12.3

• No. of customers (%)
• 6.6
• 4.1
• 0.2

+0.6 +3.8 +7.1

• 2.6

+8.1

• 0.7

+5.0 +8.0 +5.5 +3.2 +15.1 Sales per customer (%) +2.5

• 6.7
• 2.9
• 3.9

+0.8

• 6.4

+3.0

• 4.7

+0.9

• 1.0
• 1.5
• 2.0
• 1.0
• 2.5

Deviation from avg. temperature (Tokyo) +0.8 +0.5 +0.6 +1.2 +0.4 +0.2

• 2.0

+0.3 +1.8 +2.6 +2.5 +1.6

• +0.7

FY3/11

Heat wave spurred strong sales of Cool Biz products and summer formal wear; also, customer numbers increased Heat wave spurred strong sales of Cool Biz products and summer formal wear; also, customer numbers increased

Existing-store sales firm due to increase in customers and stable sales per customer

Large increase in customer numbers due to popularity of core products and promotional campaign benefits (also, 6pt calendar effect) Large increase in customer numbers due to popularity of core products and promotional campaign benefits (also, 6pt calendar effect)

Fashion Business-First Half of FY3/11 Review of Operations

SLIDE 20

20

AOKI: First-half Initiatives and Performance

Initiatives

Strengthened proposals of core functional products

• Strengthened television commercials for "Premium

Wash Suits"

• Full-page ads in newspapers nationwide promoting

"AOKI: The Science of Suits"

• Notices via inserts and direct mail

Strengthened lineup of products to match the climate

• Strengthened proposals of Cool Biz products from end
• f May through early September

Strengthened promotion of recruitment- related products yearlong Strengthened lineup of ladies' wear

• Collaborated with CanCam
• Strengthened "set ups"

(ready-made uniforms)

Existing-store sales increased thanks to development of functional core products, marketing strategy benefits, and strong sales of Cool Biz products spurred by the heat wave Fashion Business-First Half of FY3/11 Review of Operations

Performance

Thanks to strengthened proposals through television commercials and newspaper inserts

• Sales of "Premium Wash Suits" more than tripled YoY
• Customer numbers increased thanks to newspaper advertisements,

inserts, and direct mail Customer numbers at existing stores: Up 2.9% YoY

Sales of Cool Biz products were strong thanks to replacement demand and the heat wave

• Short-sleeve shirts unit sales at existing stores in 1H: Up about 20% YoY
• Slacks: Up about 10% YoY
• Summer formal wear: Up about 20% YoY

Sales of recruitment-related products were strong due to the lengthening of job searches

• Recruitment-related customers at existing stores: up about 40% YoY

Strong sales of ladies’ recruitment-related products and ladies’ wear

• General customers at existing stores: Up about 13% YoY
• Recruitment-related customers at existing stores: Up about 55% YoY

Premium Wash Suits

SLIDE 21

21

ORIHICA: First-half Initiatives and Performance

Fashion Business-First Half of FY3/11 Review of Operations

Initiatives

Enhanced the planning and lineup of products to meet increased demand for Cool Biz products Refined the product lineup to meet the needs

• f a wider range of ages and women

customers (to respond to the changing composition of shopping center customers) Opened 8 new stores including in underground train station malls

Existing-store sales increased due to efforts to refine the product lineup including Cool Biz, and the size of the business expanded due to accelerated openings of new stores

Performance

Sales of Cool Biz products were strong thanks to the heat wave

• Unit sales of short-sleeve shirts at existing stores in 1H:

Up about 7% YoY

• Unit sales of slacks: Up about 70% YoY

Increase in male and female customers aged 40 or over

• Male customers in their 40s at existing stores: Up 15% YoY
• Female customers in their 40s: Up 20% YoY

Opened new stores in line with plans

• First store in underground train station mall: Yaesu Underground

Mall Store (sales floor space of approx. 150m²)

ORIHICA Yaesu Underground Mall Store (opened in August)

SLIDE 22

22

Merchandise: strengthen the lineup of core products to meet the needs and wants of customers

<Young fashion sense + functionality >

• Evolved version of Mote Slim: "3D Slim"
• Functional products "Premium Stretch Suits" and "Premium Stretch Shirts"

<Middle-aged greater functionality >

• "Premium Thermostat Suits plus" (temperature adjusting suits)
• Temperature adjusting shoes
• "Heat Warm Series"

<Adult seniors high-quality products and styling >

• Highest-quality suit "ANNIVERSAIRE" with special attention paid to

fabrics and sewing

• Strengthen "CAFÉ SOHO" brand which offers total coordination

with a focus on jackets and slacks

AOKI: Second Half of FY3/11 Initiatives-1

We will continue to thoroughly revitalize existing stores through the coordination of product line-up, sales promotions, visual merchandising, and marketing planning centered on core products Fashion Business: FY3/11 Full-year Forecast

Sales promotion: flexible sales promotion with focus on core products and bargain sales

Launch television commercials using a new character for "3D Slim" Plan "Passion Festival" using four new characters

Highest-quality suit "ANNIVERSAIRE" "3D Slim" suits CAFÉ SOHO

SLIDE 23

23

AOKI: Second Half of FY3/11 Initiatives-2

Fashion Business: FY3/11 Full-year Forecast

Store environment: create sales floor space that is "easy to understand" and "easy to choose" with product planning and sales promotions coordination

Strengthen visual merchandising inside and outside of stores, and coordinate with sales promotions Create easy-to-understand POP and tools Enhance the ladies' corner Strengthen proposals of products conducive to total coordination

Marketing, personnel, training: Enhance "on-site" strengths through refinements to the stylist system Cost control: Rigorously manage expense allocation

Sales promotion expenses: Examine cost effectiveness, and control expenses for each medium Personnel: Reduce overtime, and control the labor schedule Rent: Negotiated lower rents

Photo: Sales floor at AOKI store

We will continue to thoroughly revitalize existing stores through the coordination of product line-up, sales promotions, visual merchandising, and marketing planning centered on core products

SLIDE 24

24

ORIHICA: Second Half of FY3/11 Initiatives

Fashion Business: FY3/11 Full-year Forecast

Continue to aggressively open new stores while refining prototype stores Store development: Continue to aggressively open new stores

Together with 12 stores for 2H, our plan is to open a total of 20 stores in the year Tokyo positioned as a key area for new store openings. Stores opened in Ogikubo, Kichijoji, and Ikebukuro In October Strictly adhere to store opening standard of investment recovery within five years and an operating margin of over 10%

Refine different prototype stores in terms of product composition, layout, visual merchandising, and staff composition

Expand the sales floor space of shopping center stores to around 330m² Train station building stores to around 165m² Refine prototype stores to create a structure capable of responding to various store conditions

Strengthen initiatives targeting efficient management

Sales promotion: Examine cost effectiveness Personnel: Reduce overtime, and control the labor schedule

SLIDE 25

82,500 87,283 85,910 89,731

6,700 5,794

5,952

8,898

20,000 40,000 60,000 80,000 100,000 FY3/08 FY3/09 FY3/10 FY3/11 Plan 2,500 5,000 7,500 10,000 25

FY3/11 Earnings Forecast

Fashion Business: FY3/11 Full-year Forecast We forecast a decline in sales and increase in profits due to the net impact of an increase in existing-store sales in 1H and the closure of M/X stores last year

Operating profit up 15.6% YoY

Operating profit (AOKI/ORIHICA) up 1.6% YoY Elimination of operating losses present in the M/X

business in last year (approx. ¥800 million)

Improvement in gross profit margin due to closure

• f M/X stores and lower procurement costs

(AOKI +ORIHICA: from 59.8% in FY3/10 to 60.2% in FY3/11)

Sales down 4.0% YoY

Sales (AOKI/ORIHICA) up 0.8% YoY

New store openings

AOKI: 4 stores (1 in 1H, 3 in 2H) ORIHICA: 20 stores (8 in 1H, 12 in 2H)

Full-year existing-store sales down 0.2% YoY

1H +2.2%, 2H (plan) -1.9%

Sales declined due to closure of 37 M/X stores

Impact: approx. ¥4,000 million

(Sales: Millions of yen) (Operating profit: Millions of yen)

Sales Operating profit ◆ Operating margin

9.9% 6.8% 6.7% 8.1%

SLIDE 26

26

ORIHICA: Toward further growth through aggressive store openings

Fashion Business

We aim to achieve a triple-digit network of stores within three years of turning profitable

<Brand Concept>

Key to the new lifestyle – create and provide new value "Business and business-to-casual style" for men's and ladies' wear based on the keywords "mixing and matching" Fusion of "tradition (suits)" with a "new aesthetic (casual)" Stores will give customers a sense of being in London, and staffers will be "style navigators"

<Marketing Features>

Store openings mainly in shopping centers (SC)

Stores designed to encourage even shoppers who have come to the SC with no particular purpose to drop by, and products and prices selected to encourage impulse buying Although a suit shop, the store design will be "ladies friendly" Increase in SCs, and change in business styles as Cool Biz takes hold in Japan Co-existence of suits and casual. Staff will propose new mixing and matching styles through dialogue with customers

1 1 17 21 35 37 45 52 69

20 40 60 80 100 120

FY3/03 FY3/04 FY3/05 FY3/06 FY3/07 FY3/08 FY3/09 FY3/10 FY3/11 (est.)

Number of Stores 10 stores within three years!

SLIDE 27

Anniversaire and Bridal Business

FY3/11 First-half Performance and Full-year Forecast

RAVIS Inc., which operated the ANNIVERSAIRE and bridal business, changed its name to ANNIVERSAIRE INC. effective October 1, 2010.

SLIDE 28

28 28 28 28 28

Anniversaire and Bridal Business—Industry Trends

Share of Guesthouse Weddings Rising Every Year

結婚関連市場 ５兆円

(%)

38.0 27.0 14.2 34.6 28.2 15.7 32.9 28.8 19.0 32.7 28.4 19.1 32.1 27.4 21.7 31.2 28.3 21.8

• 10.0

20.0 30.0 40.0

Hotels Wedding halls Guesthouse

2005 2006 2007 2008 2009 2010

Market size

Share of guesthouse weddings rising every year

Approximately ¥2 trillion

719,822 marriages annually multiply nationwide average sales per couple of ¥ 3.26 million

2007 National Vital Statistics by Ministry of Health, Labor and Welfare “Zexy Marriage Trend Survey 2010”

Guesthouse weddings' share of total wedding market in Japan

Value of wedding and reception market: ¥2 trillion

Wedding-related market: ¥5 trillion

2005

14.2%

2010

21.8%

"Zexy Marriage Trend Survey 2010"

SLIDE 29

29 29 29 29 29 29

Anniversaire and Bridal Business: Features and Position within Industry

We Operate Three Brands Mainly in Large Cities

Average price per couple at Ravis: 4,048,000 yen Average price per couple across industry: 3,257,000 yen Zexy Trend Survey 2010

Manage 12 facilities and 32 halls

Wedding hall and consultation division sales: No.4 in the industry “28th service industry comprehensive survey” Nikkei MJ, November 10, 2010 An integrated facility whose theme is "anniversary" Offers a refined style of wedding in Omotesando An entire floor within the facility can be reserved Operated over comparatively large grounds Includes a free-standing chapel and a villa- style reception hall Guesthouse with private garden Possible to open this facility in convenient locations such as in front of train stations Includes a chapel and banquet rooms within one building Includes an all-weather atrium Omotesando (5) Tokyo (3), Omiya (3), Yokohama (3), Tachikawa (2), Kobe (2), Esaka (2), Fukuoka (3) Kashiwa (2), Nagano (2), Shirakabe (3), Osaka (2)

*The number in parentheses shows the number of halls within each facility.

Product proposals Industry position

SLIDE 30

30

Anniversaire and Bridal Business-First Half of FY3/11 Review of Operations

(百万円)

(%) 1H FY3/11 YoY % YoY % % to sales % to sales Sales 10,990 97.6 100.0 Gross profit 2,528 85.7 23.0 SG&A expenses 1,742 89.8 15.9 Operating profit 786 77.6 7.2

Sales declined slightly, and profits fell, due to a decline in the number of couples married resulting from fewer holidays, and the emergence of expenses to prepare for the opening of a new facility

1H FY3/11 Financial Highlights

1,012 786 7.2% 9.0%

500 1,000 1,500 0.0 5.0 10.0

1H FY3/10 1H FY3/11 1H FY3/11 1H FY3/10 (Millions of yen)

10,990 11,263

5,000 10,000 15,000

Sales Operating profit /Operating margin

Sales down 2.4% YoY

Average sales per couple increased, but the number of

couples married decreased due to fewer holidays

Sales declined due to the closure of the Women's

Collection at ANNIVERSAIRE OMOTESANDO in July 2009

Operating profit down 22.4% YoY

Emergence of expenses* to prepare for the opening of a

new facility

Increase in expenses from the introduction of a

retirement allowance system and the application of accounting rules for asset retirement obligations

* We established an "opening preparation office" near the facility about ten months prior to the facility's opening to begin marketing activities to receive wedding orders. Preparation expenses include rent, personnel expenses, advertising expenses, and other expenses related to the operation of this

• pening preparation office.

(Millions of yen) (Millions of yen)

SLIDE 31

31

Analytic Indices

1H FY3/10 1H FY3/11 Change YoY %

• No. of facilities at period-

end

12 12 ±0 100.0%

• No. of wedding/reception

halls at period-end

32 32 ±0 100.0%

• No. of couples married

2,724 2,637

• 87

96.8%

Capacity utilization ratio

70.9% 69.8%

• 1.1pt

98.4%

Average sales per couple (thousands of yen)

3,968 4,047 +79 102.0%

Anniversaire and Bridal Business-First Half of FY3/11 Review of Operations

The number of couples married declined by 87 YoY due to one less

holiday (weekend days and public holidays)

We increased average sales per couple by ¥79,000 YoY due to

revisions to the food menu, and the introduction of a new drink plan

SLIDE 32

32

FY3/11 Full-year Forecast

Anniversaire and Bridal Business: FY3/11 Full-year Forecast

We forecast a slight increase in sales, but a decline in profits, due to an increase in expenses for the opening of a new facility in spring 2011 FY3/11 Plan

Strategy going forward

We will uniformly apply the "ANNIVERSAIRE"

name to all facilities from January 2011 to enhance the brand image

ANNIVERSAIRE TOYOSU which is scheduled to

• pen in spring 2011

We intend to bolster the standardization and

systemization of marketing know-how

We will build a management system for multi-

facility management

We will pursue synergies within the AOKI Group

Sales up 0.1% YoY

Implement measures to strengthen orders Achieve slight increase in sales by boosting average

sales per couple through revisions to the food menu and the introduction of a new drink plan

Operating profit down 11.5% YoY

Emergence of expenses* to prepare for the opening of

a new facility

Increase in expenses from the introduction of a

retirement allowance system and the application of accounting rules for asset retirement obligations

Emergence of expenses to change the company and

facility name

* We established an "opening preparation office" near the facility about ten months prior to the facility's opening to begin marketing activities to receive wedding orders. Preparation expenses include rent, personnel expenses, advertising expenses, and other expenses related to the

• peration of this opening preparation office.

(Millions of yen) FY3/11 (forecast) YoY % YoY % % to sales % to sales Sales 22,820 100.1 100.0 Gross profit 5,650 97.4 24.8 SG&A expenses 3,650 103.1 16.0 Operating profit 2,000 88.5 8.8

SLIDE 33

33 33 33

Company name changed in October 2010 Facility name will change in January 2011 RAVIS INC. ANNIVERSAIRE INC.

33 33 33 33

Anniversaire and Bridal Business—Further Evolution

Towards Growth Strategy 1. Change the company and facility name

■ Purpose of change ◆ Utilize the "ANNIVERSAIRE" brand ◆ Enhance their brand image ◆ Provide "ANNIVERSAIRE"- style weddings that are both joyful and moving

WEDDING VILLAGE PARTIRE GEIHINKAN ANNIVERSAIRE

Origin of new company name and facility name

"Anniversaire" is the French word for "anniversary" It expresses the attitude and thoughts of our company which wants to help couples celebrate their life's biggest anniversary: their wedding

New logo

SLIDE 34

34 34 34 34 34

Anniversaire and Bridal Business—Further Evolution

Towards Growth Strategy 2. Introduced original products

Purpose

◆ Improve profit margins by offering original products ◆ Provide high value-added products in the "ANNIVERSAIRE" brand ◆ Enhance the brand image

Bean collection Original product limited edition: wrapping cloth Gateaux clover

Launched "Wedding Gift Collection" sales in November 2010

ANNIVERSAIRE Baum cake

Wedding guest gift catalog "GIFT": approximately 500 popular gifts including 25 original gifts Wedding guest dessert catalog "SWEETS": nine original items including chocolates and baked goods

SLIDE 35

35 35 35 35 35

Anniversaire and Bridal Business—Further Evolution

Towards Growth Strategy 3. Opening a New Model Facility

Reception hall "VILLA PARIS" Chapel: outside image

Spring 2011 grand opening of "ANNIVERSAIRE TOYOSU"

Features

◆ Ideally located just a 5-minute train ride from Ginza, and a 3-minute walk from Toyosu Station ◆ Follows the wedding style of ANNIVERSAIRE OMOTESANDO with a independent chapel ◆ Flower shower at all-weather atrium, and lagoon fountain at bottom of staircase ◆ Three different style reception halls: VILLA PARIS, VILLA MONACO, and VILLA PROVENCE Established an "opening preparation office" in June 2010 to begin marketing for wedding orders strong orders above plans

SLIDE 36

Entertainment Business

FY3/11 First-half Performance and Full-year Forecast

We subdivided the entertainment business into two segments from FY3/11: the karaoke facility operations segment and the café complex operations segment

SLIDE 37

37 37 37 37

Entertainment Business—Facility Chain, and Industry Position

Top-tier Industry Position, and Large Growth Potential

Number of facilities 181 206 217

Industry position: market scale Karaoke rooms Café complex

Source: "Café Complex Survey Report 2009", "Karaoke White Paper 2010"

251

2009 ¥385.2 billion 2019 ¥374.0 billion 2009 ¥224.2 billion Industry rank: No.6

"27th service industry comprehensive survey" Nikkei MJ, November 8, 2009

Industry rank: No.1

"27th service industry comprehensive survey" Nikkei MJ, November 8, 2009

268 facilities

(as of Nov. 18, 2010)

Karaoke 121 Café complex 133 Fitness 2

Yamagata Niigata Toyama Nagano Ishikawa Fukui Shiga Kyoto Hyogo Osaka Gunma Tochigi Gifu Okayama Akita Nara Wakayama Iwate Miyagi Fukushima Ibaraki Saitama Chiba Tokyo Kanagawa Yamanashi Shizuoka Aichi Mie

123 143 2 1

SLIDE 38

38 38 38 38

Entertainment Business—Facility Types

Facility Features: Facilities Based on a Clear Concept (1)

Relaxing space for tomorrow's dynamism

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

3 4 5 6 7 8 9

10 11 12 13 16 17 18 19 20 21 15 14 22 23 27 24 25 26 34 35 31 30 33 33 29 28

Party room Stage room Front lobby

2 1

Family room VIP room

Ｖ Ｉ Ｐ ルーム

Front lobby Facility interior VIP room Party room Regular room Stage room Family room

Entrance

Drink bar

SLIDE 39

39 39 39 39

Entertainment Business—Facility Types

Facility Features: Facilities Based on a Clear Concept (2)

Extreme relaxation close at hand

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.

Front lobby Drink bar

Comics, magazines, newspapers

Single seat Living room Sofa seat Massage seat Full flat seat Full flat seats Full flat seats Business seats Sofa seats Reclining seats Reclining seats Pair flat seats Comic counter Magazine Living room Massage seats Reception counter Entrance Drink corner Women's toilet Men's toilet

Multi- purpose toilet

Reclining seats Sofa seats Pair flat seats Business seats Smoking booth

SLIDE 40

40

Increase in sales due to new facility openings, but slight decline in profits from rise in facility-opening expenses

6,110 5,832 6,052 4,993

2,000 4,000 6,000 8,000

1H FY3/10 1H FY3/11 404 539 489 362 200 400 600 1H FY3/10 1H FY3/11

Entertainment Business—First Half of FY3/11 Review of Operations

Sales up 12.4% YoY

Rise in sales due to new openings of karaoke

facilities and café complexes

Operating profit down 0.8% YoY

Karaoke facility profits declined due to a decline

in existing-facility sales

Café complex profits increased due to an

increase in existing-facility sales

Increase in new facility-opening expenses

1H FY3/11 YoY % % to sales

Sales

12,163 112.4 100.0

Gross profit

2,113 110.8 17.4

SG&A expenses

1,218 121.2 10.0

Operating profit

894 99.2 7.4

Number of stores at period-end

263

1H FY3/11 Financial Highlights

(Millions of yen) (Millions of yen)

Sales

Operating profit/ Operating margin (overall)

Karaoke Café complex

Upper left: Karaoke "COTE D'AZUR" Lower right: Cafe complex "KAIKATSU CLUB" (Millions of yen)

8.3% 7.4%

SLIDE 41

41

Increase in sales due to new facility openings, but decline in profits due to lower existing-facility sales and an increase in facility-opening expenses

1H FY3/11 YoY % % to sales

Sales

6,110 104.8 100.0

Gross profit

1,029 95.7 16.8

SG&A expenses

624 116.7 10.2

Operating profit

404 75.0 6.6

Number of stores at period-end

121 1H FY3/10 1H FY3/11 YoY %

Existing facilities Room charges (% to sales)

53.6 52.9

• 0.7

Food and beverage sales (% to sales)

45.2 46.0 +0.8

Other sales (% to sales)

1.2 1.1

• 0.1

Karaoke Facility Operation Business—First Half of FY3/11 Review of Operations

Sales up 4.8% YoY

Eight new facilities opened mostly around train stations Decrease in existing-store sales: -5.3%

・Decline in adult customers particularly in late night hours ・Average sales per customer nearly maintained at year-ago level due to menu revisions and an increase in afternoon room usage

Operating profit down 25.0% YoY

Increase in new facility-opening expenses

1H FY3/11 Financial Highlights

1H FY3/11 (%)

Sales

94.7

Number of customers

94.9

Sales per customer

99.7

Average sales per customer (yen)

1,594

YoY change in average sales per customer (yen)

• 4

Year-on-year comparisons of sales, number of customers, and average sales per customer at existing facilities

(Millions of yen)

SLIDE 42

42

Karaoke Facility Operation Business—FY3/11 Full-year Forecast

(Millions of yen)

FY3/11 (forecast) YoY % % to sales

Sales

13,040 104.8 100.0

Gross profit

2,646 99.1 20.3

SG&A expenses

1,310 114.3 10.0

Operating profit

1,336 87.6 10.2

Number of stores at period-end

129

FY3/11 Full-year Forecast

Sales up 4.8% YoY

New facility openings: 8 for 1H, 8 for 2H, 16 for full

year

Mostly near train stations in central Tokyo: opened flagship "Ginza Corridor Facility" on Nov 18, 2010

Remodel facilities: 12 for 1H, 6 for 2H, 18 for full

year

Enhancing food service

Capture demand for karaoke parties (end-of-the-year/new year parties and welcome/farewell parties) Introduce seasonal menus

Operating profit down 12.4% YoY

Increase in new facility-opening expenses

SG&A expenses up 14.3% YoY

Existing-facility sales

Estimated: -4.5% (-5.3% for 1H result, -3.7% for 2H forecast)

We forecast an increase in sales due to 16 new facility openings, but a decline in profits due to lower existing-facility sales and an increase in facility-opening expenses

Front lobby of Ginza Corridor Facility

SLIDE 43

43

Despite an increase in facility-opening expenses, sales and profits rose due to new facility

• penings and greater sales at existing facilities

1H FY3/11 YoY % % to sales

Sales

6,052 121.2 100.0

Gross profit

1,084 130.3 17.9

SG&A expenses

594 126.4 9.8

Operating profit

489 135.3 8.1

Number of stores at period-end

142 1H FY3/10 1H FY3/11 YoY %

Existing facilities (%) Booth sales (% to sales)

82.7 85.6 +2.9

Food sales (% to sales)

12.4 12.6 +0.2

Other sales (% to sales)

4.9 1.8

• 3.1

Café Complex Operations Business—First Half of FY3/11 Review of Operations

Sales up 21.2% YoY

9 New store openings Existing-store sales up 4.6%

・Increase in average sales per customer thanks to introduction of seasonal menus ・Increase in customers using café complexes to escape the heat.

Operating profit up 35.3% YoY

Greater sales from existing complexes more than

• ffset the increase in complex-opening expenses

1H FY3/11 Financial Highlights

1H FY3/11 (%)

Sales

104.6

Number of customers

103.0

Sales per customer

101.6

Average sales per customer (yen)

1,290

YoY change in average sales per customer (yen)

+20

Year-on-year comparisons of sales, number of customers, and average sales per customer at existing facilities

(Millions of yen) *Existing café complexes only.

SLIDE 44

44

Café Complex Operations Business—FY3/11 Full-year Forecast

(Millions of yen) FY3/11 (forecast) YoY % % to sales

Sales

11,960 119.6 100.0

Gross profit

1,736 122.2 14.5

SG&A expenses

1,172 116.8 9.8

Operating profit

564 135.2 4.7

Number of stores at period-end

154

FY3/11 Full-year Forecast

Sales up 19.6% YoY

New facility openings: 9 for 1H, 12 for 2H, 21 for

full year

Remodel facilities: 14 for 1H, 9 for 2H, 23 for full

year

Enhancing food service: strengthening morning,

lunch, and seasonal menus

Enhancing content

Boost average sales per customer through introduction

• f online darts and billiards

Operating profit up 35.2% YoY

Increase in new facility-opening expenses

SG&A expenses up 16.8% YoY

Existing-store sales

Estimated: +2.4% (+4.6% for 1H result, +0.1% for 2H forecast)

We forecast an increase in sales and profits due to new facility openings and plans to increase sales at existing facilities

Menu example at café complexes

SLIDE 45

Supplementary Documents

Notes on page 46, 48 :

• 1. Earnings per share: Net income divided by average number of common shares outstanding (excluding treasury stock).
• 2. All amounts are rounded down to million yen.
• 3. The combined operating profit for each segment and total operating profit do not match due to inter-segmental adjustments. Please see p9 for the difference.
• 4. Segment figures for the previous term have been recalculated based on this term's classifications.

SLIDE 46

46

First Half of FY3/11 Consolidated Business Results

1H FY3/10 Results % 1H FY3/11 Plan %

1H FY3/11 Results % YoY change YoY % Sales

57,908 100.0 57,700 100.0 58,603 100.0 694 101.2

Fashion

35,832 100.0 34,300 100.0 35,466 100.0

• 366

99.0

Anniversaire/Bridal

11,263 100.0 11,205 100.0 10,990 100.0

• 272

97.6

Karaoke

5,832 100.0 6,400 100.0 6,110 100.0 278 104.8

Café Complex

4,993 100.0 5,800 100.0 6,052 100.0 1,058 121.2

Gross profit

25,639 44.3 25,720 44.6 26,231 44.8 592 102.3

Fashion

20,564 57.4 20,680 60.3 21,248 59.9 684 103.3

Anniversaire/Bridal

2,952 26.2 2,720 24.3 2,528 23.0

• 423

85.7

Karaoke

1,075 18.4 1,088 17.0 1,029 16.8

• 45

95.7

Café Complex

832 16.7 862 14.9 1,084 17.9 252 130.3 SG&A expenses 24,388 42.1 24,270 42.1 24,098 41.1

• 290

98.8

Fashion

21,236 59.3 20,770 60.6 20,651 58.2

• 584

97.2

Anniversaire/Bridal

1,939 17.2 1,790 16.0 1,742 15.9

• 196

89.8

Karaoke

535 9.2 628 9.8 624 10.2 89 116.7

Café Complex

469 9.4 542 9.3 594 9.8 124 126.4 Operating profit 1,250 2.2 1,450 2.5 2,132 3.6 882 170.6

Fashion

• 671
• 90
• 597

1.7 1,269

• Anniversaire/Bridal

1,012 9.0 930 8.3 786 7.2

• 226

77.6

Karaoke

539 9.3 460 7.2 404 6.6

• 135

75.0

Café Complex

362 7.3 320 5.5 489 8.1 127 135.3

Ordinary income

1,708 3.0 1,950 3.3 2,730 4.7 1,022 159.8

Net income

918 1.6 50 0.1 446 0.8

• 471

48.6

Earnings per share (Yen)

21.52

• 1.17
• 10.46
• 11.06
• Shares outstanding at

period-end (1,000 shares) 42,674

• 42,673
• 42,672
• 2
• (Millions of yen excluding %)

SLIDE 47

47

First Half of FY3/11 SG&A Expenses

(Millions of yen excluding %)

1H FY3/10 Results 1H FY3/11 Results

Total Fashion Anniversaire / Bridal Karaoke Café complex Total Fashion Anniversaire / Bridal Karaoke Café complex

YoY % YoY % YoY % YoY % YoY % Advertising expenses 3, 208 2,478 588 69 46 3,371 105.1 2,604 105.1 541 91.9 104 148.5 50 107.7 Personnel expenses 9,248 7,557 491 303 274 9,036 97.7 7,314 96.8 430 87.5 342 113.0 352 128.4 Rents 5,498 5,368 31 23 21 5,528 100.5 5,542 103.2 21 67.1 20 86.9 20 96.5 Depreciation 1,411 1,161 39 3 5 1,314 93.1 1,048 90.3 17 44.4 4 109.9 7 148.5 Notes: 1. The sum of business segment items does not match the totals because totals include expenses of AOKI Holdings Inc. and inter-segment eliminations.

• 2. Other than above, figures for the "ANNIVERSAIRE/Bridal," the "Karaoke Facility Operations", and the "Café Complex Operations" businesses include

following expenses in the cost of sales.

1H FY3/10 Results 1H FY3/11 Results

Anniversaire/ Bridal Karaoke Café complex Anniversaire/ Bridal Karaoke Café complex YoY % YoY % YoY % Personnel expenses 1,856 1,322 1,308 2,043 110.1 1,430 108.2 1,603 122.6 Rents 706 1,291 1,032 791 112.0 1,327 102.8 1,181 114.4 Depreciation 443 352 213 492 111.1 438 124.4 347 162.9

SLIDE 48

48

FY3/11 Consolidated Forecast

FY3/10 Results % FY3/11 Plan % YoY change YoY %

Sales

131,124 100.0 130,300 100.0

• 824

99.4

Fashion

85,910 100.0 82,500 100.0

• 3,410

96.0

Anniversaire/Bridal

22,794 100.0 22,820 100.0 25 100.1

Karaoke

12,437 100.0 13,040 100.0 602 104.8

Café Complex

9,998 100.0 11,960 100.0 1,961 119.6

Gross profit

60,637 46.2 60,450 46.4

• 187

99.7

Fashion

50,191 58.4 49,700 60.2

• 491

99.0

Anniversaire/Bridal

5,801 25.5 5,650 24.8

• 151

97.4

Karaoke

2,670 21.5 2,646 20.3

• 24

99.1

Café Complex

1,420 14.2 1,736 14.5 315 122.2 SG&A expenses 50,683 38.7 50,150 38.5

• 533

98.9

Fashion

44,397 51.7 43,000 52.1

• 1,397

96.9

Anniversaire/Bridal

3,540 15.5 3,650 16.0 109 103.1

Karaoke

1,145 9.2 1,310 10.0 164 114.3

Café Complex

1,003 10.0 1,172 9.8 168 116.8 Operating profit 9,954 7.6 10,300 7.9 345 103.5

Fashion

5,794 6.7 6,700 8.1 905 115.6

Anniversaire/Bridal

2,261 9.9 2,000 8.8

• 261

88.5

Karaoke

1,524 12.3 1,336 10.2

• 188

87.6

Café Complex

417 4.2 564 4.7 146 135.2

Ordinary income

10,750 8.2 11,200 8.6 449 104.2

Net income

3,618 2.7 4,000 3.1 381 110.5

Earnings per share (Yen)

84.79

• 93.74
• 8.95
• Shares outstanding at period-

end (1,000 shares)

42, 673

• 42, 672
• 1
• (Millions of yen)

SLIDE 49

49 (Millions of yen excluding %)

FY3/11 SG&A Expenses

FY3/10 Results FY3/11 Plan

Total Fashion Anniversaire/ Bridal Karaoke Café complex Total Fashion Anniversaire/ Bridal Karaoke Café complex

YoY % YoY % YoY % YoY % YoY %

Advertising expenses 8,004 6,407 1,046 170 90 8,480 105.9 6,700 104.6 1,230 117.6 253 148.8 102 113.3 Personnel expenses 18,313 15,097 782 651 587 18,016 98.4 14,740 97.6 790 101.0 697 107.1 689 117.4 Rents 11,218 10,934 36 44 39 11,052 98.5 11,087 101.4 39 108.3 41 93.2 39 100.0 Depreciation 2,925 2,400 48 7 11 2,712 92.7 2,155 89.8 47 97.9 11 157.1 18 163.6

FY3/10 Results FY3/11 Plan

Anniversaire/ Bridal Karaoke Café complex Anniversaire/ Bridal Karaoke Café complex

YoY % YoY % YoY %

Personnel expenses 3,816 2,766 2,733 4,137 108.4 2,933 106.0 3,268 119.6 Rents 1,497 2,607 2,176 1,564 104.5 2,570 98.6 2,424 111.4 Depreciation 926 759 493 1,014 109.5 966 127.3 769 156.0

Notes: 1. The sum of business segment items does not match the totals because totals include expenses of AOKI Holdings Inc. and inter-segment eliminations.

• 2. Other than above, figures for the "ANNIVERSAIRE/Bridal," the "Karaoke Facility Operations", and the "Café Complex Operations" businesses include

following expenses in the cost of sales.

SLIDE 50

50

(1) Change in existing-store sales

Reference: First Half of FY3/11 Fashion Business Performance

(%) (%)

(2) Change in number of customers and sales per customer at existing stores (3) Number of units sold and unit prices of business suits

First half YoY % Second half YoY % Full year YoY % Number of units sold (in ten thousands) FY3/11 53.5 99.9 FY3/10 53.6 97.1 82.3 107.5 135.9 103.2 Unit price (thousands of yen) FY3/11 23.1 100.0 FY3/10 23.1 95.1 22.7 96.6 22.9 96.2 Apr. May Jun. Jul. Aug. Sep. First half Second half Full year FY3/11 0.3 3.0 0.2 3.9 6.4 3.4 2.2 FY3/10

• 9.6
• 4.8
• 13.3
• 12.5
• 5.7
• 4.6
• 8.8
• 3.2
• 5.6

Apr. May Jun. Jul. Aug. Sep. First half Second half Full year Customers FY3/11

• 2.6

8.1

• 0.7

5.0 8.0 5.5 3.2 FY3/10

• 3.5
• 1.4
• 6.0
• 9.7
• 3.5
• 0.6
• 4.4
• 0.3
• 2.2

Sales per customer FY3/11 3.0

• 4.7

0.9

• 1.0
• 1.5
• 2.0
• 1.0

FY3/10

• 6.3
• 3.5
• 7.8
• 3.1
• 2.3
• 4.1
• 4.6
• 2.9
• 3.6

SLIDE 51

51 (Millions of yen)

(4) Sales by category (5) Average total sales area

(Sq.m.) 1H FY3/10 Results % 1H FY3/11 Results % YoY change YoY % Heavy clothing 16,616 46.4 17,150 48.4 533 103.2 Medium clothing 3,810 10.6 3,813 10.8 3 100.1 Light clothing 14,475 40.4 13,530 38.1

• 944

93.5 Other 930 2.6 971 2.7 41 104.4 Total 35,832 100.0 35,466 100.0

• 366

99.0 1H FY3/10 1H FY3/11 YoY change YoY % 297,339 280,154

• 17,185

94.2

Definition: Heavy clothing: Suit, coat, formal wear Medium clothing: Jacket, slacks Light clothing: Casual wear, shirt and all other clothing and accessories

SLIDE 52

52

(Number of stores)

(6) Store network by prefecture

FY3/10 1H FY3/11

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

AOKI ORIHICA M/X Total Total AOKI ORIHICA Total AOKI ORIHICA Total AOKI ORIHICA Total

Hokkaido 15 15 15 15 Iwate 2 2 2 2 Miyagi 6 3 9 6 3 9 Fukushima 6 1 7 6 1 7 Ibaraki 16 2 18 1 1 1 1 15 3 18 Tochigi 7 1 8 7 1 8 Gunma 8 8 8 8 Saitama 48 6 54 1 1 48 5 53 Chiba 42 7 49 2 2 1 1 41 9 50 Tokyo 53 11 64 2 2 1 1 53 12 65 Kanagawa 43 7 1 51 2 2 43 9 52 Niigata 8 1 9 8 1 9 Toyama 7 7 7 7 Ishikawa 7 7 7 7 Fukui 2 2 2 2 Yamanashi 5 5 5 5 Nagano 21 21 21 21 Shizuoka 18 1 19 18 18 Gifu 8 8 1 1 7 7 Aichi 43 4 47 1 1 42 4 46 Mie 10 10 10 10 Shiga 4 1 5 4 1 5 Kyoto 2 2 2 2 Osaka 25 4 29 1 1 1 1 25 4 29 Hyogo 9 4 13 1 1 10 4 14 Nara 2 2 2 2 Hiroshima 3 3 3 3 Fukuoka 9 9 9 9 Kumamoto 2 2 2 2 Total 431 52 2 485 1 8 9 4 3 7 428 57 485

* Two M/X stores closed in August 2010

SLIDE 53

53 First half Second half Full year FY3/11 (plan) 2.2

• 1.9
• 0.2

FY3/10

• 8.8
• 3.2
• 5.6

First half Second half Full year Customers FY3/11 (plan) 3.2

• 0.9

0.9 FY3/10

• 4.4
• 0.3
• 2.2

Sales per customer FY3/11 (plan)

• 1.0
• 1.0
• 1.1

FY3/10

• 4.6
• 2.9
• 3.6

Reference: FY3/11 Fashion Business Outlook

(1) Change in existing-store sales

(%) (%)

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

SLIDE 54

54

(Millions of yen)

FY3/10 Results % FY3/11 Plan % YoY change YoY % Heavy clothing 42,301 49.2 41,830 50.7

• 471

98.9 Medium clothing 6,701 7.8 6,500 7.9

• 201

97.0 Light clothing 34,801 40.5 32,070 38.9

• 2,731

92.2 Other 2,105 2.5 2,100 2.5

• 5

99.7 Total 85,910 100.0 82,500 100.0

• 3,410

96.0

(3) Sales plan by category