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Performance Briefingfor the Interim Period Ended September 30, 2007

November 16, 2007AOKI Holdings Inc.

2

Contents

Notice of Group Reorganization 4FY3/08 Interim Financial Highlights 6Medium-term Business Plan Summary 7Medium-term Goals for Business Units 8Consolidated Medium-term Earnings Plan: Sales 9Consolidated Medium-term Earnings Plan: Operating Profit 10

The AOKI Group Overview and Objectives 3

Interim FY3/08 Review of Operations 11

Consolidated Profit and Loss 12Sales and Operating Profit by Business Segment 13Anniversaire and Bridal Business 14Entertainment Business 15Major Changes in Consolidated Balance Sheet 16Consolidated Cash Flow Statement 17Number of Stores Opened/Closed 18

FY3/08 Sales and Earnings Forecasts 19

Consolidated Forecast 20Forecast for Sales and Operating Profit by Business Segment 21Anniversaire and Bridal Business: Plan for FY3/08 22Entertainment Business: Plan for FY3/08 23Outlook for Store Openings/Closings 24

Fashion Business (Consolidated) Interim FY3/08 Performance 26Fashion Business (AOKI&ORIHICA): Existing-store Sales, Customer Volume and Sales per Customer 27AOKI: First Half of FY3/08 Initiatives and Performance 28ORIHICA: First Half of FY3/08 Initiatives and Performance 29Outlook for the Second Half of FY3/08 30AOKI: Second Half of FY3/08 Initiatives 31ORIHICA: Second Half of FY3/08 Initiatives 32M/X: First-half Performance, Second-half Initiatives 33Store Network Strategy 34FY3/08 Earnings Forecast 35

Fashion Business Results and Objectives 25

Supplementary Documents 36

Interim FY3/08 Consolidated Business Results 37Interim FY3/08 SG&A Expenses 38FY3/08 Consolidated Forecast 39FY3/08 SG&A Expenses Forecast 40Reference: Interim FY3/08 Fashion Business Performance 41Reference: FY3/08 Fashion Business Outlook 44

The AOKI GroupOverview and Objectives

4

Notice of Group Reorganization: Shift to a Pure Holding Company Structure

AOKI Holdings to shift a pure holding companyRAVIS and VALIC to become wholly-owned subsidiaries

We aim to become a high-level services company not limited to the fashion business

We maximize synergies in four aspectsi. Human resources training ii. Strengthening of strategic decision-makingiii. Improving flexibility iv. Pursuit of efficiency

What the new scheme means for investorsEnhanced corporate value through accelerated growthElimination of business risk through unified business management, and improved investment quality attractiveness through optimization of the business portfolio

Maximize group consolidated earnings

5

Notice of Group Reorganization:Diagram of Holding Company Structure

MARUFURU RAVIS VALIC

100% 76.6% 64.9%

Current status

MX(*)

100%

Stock swap and business divestiture

Wholly-owned subsidiaries through a

stock swap

AOKI ORIHICA

Business divestiture

Effective April 1, 2008

MX

100%

Shift to a pure holding company structure

AOKI ORIHICA

100% 100%

Fashion BusinessBridal

BusinessEntertainment

Business

100% 100%

AOKI Holdings AOKI Holdings

AOKI Holdings

* MARUFURU Co., Ltd. will be renamed MX Inc. effective March 1, 2008

RAVIS Inc.: listed on the JASDAQ (Code:2465)VALIC Co., Ltd.: listed on the JASDAQ (Code: 2387)

As a high-level services company, all businesses will be managed under one roof

RAVIS

RAVIS

VALIC

VALIC

6

FY3/08 Interim Financial Highlights

Fashion BusinessAOKI

Earnings improved on strong suit sales and higher average sales per customerOpened 15 stores, about the same as planned

ORIHICAOpened 3 stores as planned

M/XMade progress in consolidating the store network to improve efficiency

Anniversaire and Bridal BusinessSales up 15.7% YoY, surpassing the planOpened PARTIRE ESAKA WEDDING VILLAGE and “THE GRAND” on the 3rd floor of ANNIVERSAIRE OMOTESANDO

Entertainment BusinessProfits exceeded our target due to the overall success of marketing strategies, and strong results from existing facilitiesOpened 16 facilities in the karaoke and café complex operations

317 374 375

8494 978395 96

0

100

200

300

400

500

600

700

Interim FY3/07 Interim FY3/08 (Plan)

Interim FY3/08(Actual)

Fashion Anniversaire and Bridal Entertainment

10 1015

9

8 8

7

55

0

10

20

30

40

Interim FY3/07 Interim FY3/08 (Plan)

Interim FY3/08(Actual)

Fashion Anniversaire and Bridal Entertainment

Achieved record interim profits: from fashion business down, all businesses exceeded targets

564 570

24

32

485

23

(Hundred million yen)

(Hundred million yen)

Sales

Operating Profit

7

Medium-term Business Plan Summary

<Medium-term goals>EPS ¥140 ROE 6.6% ROA 9.0% (ordinary income)

Increase profitability (goal is 10% operating margin) and continually increase earningsAim to maximize shareholder value by improving the productivity of capital and investments

Entertainment

Fashion

Anniversaire and Bridal

1. Aim to increase profitability by pursuing group synergies

2. Aim to increase sales, earnings and the operating margin by refining and innovating activities in all businesses

Interim FY3/08 (forecast)EPS: ¥122.0

Operating margin: 9.4%

Interim FY3/08 (forecast)EPS: ¥122.0

Operating margin: 9.4%

8

Medium-term Goals for Business UnitsFashion Business

AOKIOpen more than 25 stores annually, to capture the leading market share nationwideStabilize sales at existing stores

• Strengthen measures promoting travel wear for baby boomers, and business wear for children of baby boomers and for the mid-range age segment, to increase the number of customers and sales per customer

• Expand use of the stylist system to increase the number of regular customers and sales per customerORIHICA

Work on improving prototype stores in order to stabilize sales at existing stores while opening more stores at new and existing shopping centers Review sales promotion and personnel expense structure with goal of achieving an operating framework that can sustain an operating margin of at least 10%

M/XLay the groundwork for a 100-store network in the near future while enlarging the network in a manner that emphasizes profitability and establishes a business format

Anniversaire and Bridal BusinessUse our unique training program to develop a workforce that is highly skilled and dedicated to provide outstanding servicesUse the area network expansion approach to open more facilities in major cities, primarily in the Tokyo and Osaka areas (2 new facilities in FY3/08, 3 planned for FY3/09 onward)Reinforce the management system in order to handle more facilities, and use area network expansion to boost efficiency in recruiting, advertising and procurement

Entertainment BusinessAchieve consistent growth by selective store network expansion supporting sustainable growthReinforce the base of operations by maximizing synergies across business unitsRecruit and train talented people who can contribute to consistent growth and a more powerful base of operations

9

Consolidated Medium-term Earnings Plan: Sales

* MARUFURU’s store “M/X” is included in the Fashion Business beginning FY3/08.

764 879 917

182203 246174201

227

0200400600800

1,0001,2001,4001,600

FY3/07 (Results) FY3/08 (Revised plan) FY3/09

Fashion Anniversaire and Bridal Entertainment(Hundred million yen)

(Millions of yen, %, Stores)FY3/07

(Results) A YoY %

105.1

102.7

111.6

112.0

+59

+29

+2

+28

Number of stores

FY3/08 (Revised plan) B

FY3/09 C

YoY % (B/A)

YoY % (C/B)

114.4 108.3

Fashion 76,448 87,900 115.0 91,700 104.3

Entertainment 17,403 20,100 115.5 22,700 112.9

583 673 +90 737 +64

Fashion 392 454 +62 490 +36

Anniversaire and Bridal 10 12 +2 15 +3

Anniversaire and Bridal 18,291 20,300 111.0 24,600 121.2

Entertainment 181 207 +26 232

Sales

+25

128,300 139,000112,143

10

Consolidated Medium-term Earnings Plan: Operating Profit

* Figures do not match non-consolidated VALIC figures due to eliminations for consolidation.

77 84 87

2815

17

1921

12

9.4%9.7% 9.5%

0

20

40

60

80

100

120

140

FY3/07 (Results) FY3/08 (Revised plan) FY3/09

FY3/07(Results) A YoY %

107.1

105.8

122.9

82.8

94.8

Entertainment (*) 1,239 1,550 125.1 1,770 114.2

FY3/08 (Revised plan) B

Net income

FY3/09 C

YoY % (B/A)

YoY % (C/B)

111.1 109.1

Fashion 7,705 8,480 110.1 8,780 103.5

5,151 5,500 106.8 6,500 118.2

Anniversaire and Bridal 1,938 2,190 113.0 2,800

Operating profit

127.9

12,100 13,20010,889

(Millions of yen, %)

(Hundred million yen) Fashion Anniversaire and Bridal Entertainment Operating margin

Interim FY3/08 Review of Operations

12

Consolidated Profit and Loss

Account/Period Interim FY3/08 Interim FY3/07 Change YoY % Major components

Sales

Gross profitGross profit margin

Sales & Administrative expense

Operating profitOperating margin

Non-operating profit

Non-operating expenses

Ordinary income

Extraordinary gains

57,063

Extraordinary losses

Net income

117.5Increase due to new store openings in each business segment, and new consolidation of MARUFURU

25,78145.2%

8,50648,556

21,61344.5%

19,253

2,3594.9%

1,399

908

2,850

4

119.3Improvements in Fashion Business by 0.7 points, and Entertainment Business by 1.4 points

22,543

464

4,167+0.7pt

3,290

877+0.8pt

-282

-102

696

-

26

117.1 SG&A ratio improved 0.2 points

806 88.7 Decline in expenses for sub-leased properties

1,142 328

3,547 124.4

4 117.1

491 105.7

1,470 128.7

3,2375.7% 137.2

1,116 79.8Decline in real estate leasing income from direct leases, and fewer commission income

(Millions of yen)

13

Sales and Operating Profit by Business Segment

0

10

20

30

40

Interim FY3/07 Interim FY3/08

5.74.9

0.0

1.0

2.0

3.0

4.0

5.0

6.0

0

100

200

300

400

500

600

700


Entertainment

Anniversaire andBridal

Fashion

Business Interim FY3/08 Interim FY3/07 Change YoY % Major componentsTotal 57,063 48,556

Fashion 31,741

Anniversaire and BridalEntertainment 9,693 8,346 1,346 116.1 Due to new store openings in FY3/07 and Interim FY3/08

8,468

117.5

37,573

8,506

5,832

1,326

118.4 Increase due to new store openings in FY3/07 and Interim FY3/08, and new consolidation of MARUFURU

9,795 115.7 Due to new store openings in FY3/07

149.4248502750EntertainmentAnniversaire and BridalFashion

8261,0372,359

Interim FY3/07

117535877

Change

114.2944151.61,573137.23,237Total

YoY %Interim FY3/08Business

485570

23

32

(Millions of yen)Sales by business segment

Operating profit by business segment

Sales Operating profit/Operating margin(Hundred million yen) (Hundred million yen) (%)

(Millions of yen)

14

Anniversaire and Bridal Business

Sales up 15.7% YoYDue to opening of new facilities (PARTIRE ESAKA, and the 3rd floor of ANNIVERSAIRE OMOTESANDO) Facilities in Osaka, Kobe, and Tachikawa opened in FY3/07, also contributed to sales growth

Operating profit up 14.2% YoYContribution from facilities in Osaka, Kobe, and Tachikawa opened in FY3/07 % of initial contacts resulting in sales is higher than competitors

Sales and profits rose due to new store openings in FY3/07, and continued strength at existing facilities

FY3/08 Interim Financial Highlights

9,7958,468

826 944

9.69.8

0

1,500

3,000

4,500

6,000

7,500

9,000

10,500

12,000

Interim FY3/07 Interim FY3/080.0

2.0

4.0

6.0

8.0

10.0

12.0

Sales Operating profit Operating margin

Interim FY3/08YoY % % to sales

115.7 100.027.617.99.6

109.4106.9114.2

9,7952,6981,754

944

SalesGross profitSG&A expensesOperating profit

(Millions of yen)

(Millions of yen) (%)

PARTIRE ESAKA WEDDING VILLAGE<opened September 2007>

=Facility capacity=

Chapel: 120 persons (sit-down)Party spaces:French House: 100 personsItalian House: 100 persons

15

Entertainment Business

Sales up 16.1% YoY16 new facilities (5 COTE D’AZUR and 11 KAIKATSU CLUB)Contribution from 30 new facilities in FY3/07 (4 COTE D’AZUR and 26 KAIKATSU CLUB) Higher sales at existing facilitiesKaraoke: +1.9%Café Complex: +5.9%

Operating profit up 49.4% YoYStrong performance by existing facilities and contribution of facilities added during FY3/07Localization of advertising media for each facilityImplementation of efficient facility renovation

Sales and profits rose due to strength at existing facilities, and a contribution from facilities opened in FY3/07

9,693

8,346

750502

6.0

7.7

0

2,000

4,000

6,000

8,000

10,000

Interim FY3/07 Interim FY3/080.0

2.0

4.0

6.0

8.0

10.0


Interim FY3/08YoY % % to sales

116.1 100.017.39.5

Operating profit 750 149.4 7.7Number of stores at period-end 196

126.4112.4

9,6931,674

924

SalesGross profitSG&A expenses

* Figures do not match non-consolidated VALIC figures due to eliminations for consolidation.

FY3/08 Interim Financial Highlights(Millions of yen) (%)

(Millions of yen)

16

Major Changes in Consolidated Balance Sheet

Account/Period Interim FY3/08 FY3/07 Change Major contributing factors

Current assetsCash in hand and in banksInventories

Fixed assetsTangible fixed assetsIntangible fixed assetsInvestments and other assets

Total assetsCurrent liabilities

Notes and accounts payable-trade

Long-term liabilitiesCorporate bonds/debts

Total liabilitiesCommon stockCapital surplusRetained earningsTreasury stockUnrealized gain on securitiesStock acquisition rightsMinority interests

33,120

Total net assetsTotal liabilities and net assets

11,417-9,18842,309

19,06214,599

103,44767,6924,025

31,728145,75629,056

10,474 11,911 -1,437 Seasonal factors

275 149 1252,112 1,919 192

22,190 25,026 -2,83613,228 16,393 -3,164 Periodic repayments

49,387 54,083 -4,69623,282 23,282 -22,766 22,586 18047,949 47,149 799 Reflects interim net income

-4,195 -4,490 294905 1,075 -170

93,095 91,673 1,421142,482 145,756

Capital investment and seasonal factors

15,208

-3,274

-7,645609

5,9144,950

-21985

-3,274

Consolidation of MARUFURU (¥833mn)

4,004

-1,860

32,714 Consolidation of MARUFURU

142,48227,196

109,36172,643 New store openings

(Millions of yen)

17

Consolidated Cash Flow Statement

Account/Period Interim FY3/08 Interim FY3/07 Change Major contributing factors

Cash flows from operating activities 1,640 -2,693 4,333 Higher interim net income, and

decrease in accounts payable

Cash flows from investing activities -6,541 -5,731 -810 Outlays increased due to increase in

capital investments

Cash flows from financing activities -2,744 -2,357 -386

Decrease due to repayment for borrowings (¥1,119mn) and payment for purchase of treasury stock (¥885mn)

Change in cash and cash equivalents -7,645 -10,782 3,136

Beginning balance 18,862 24,113 -5,251

Ending balance 11,217 13,331 -2,114

(Millions of yen)

18

(Stores, Millions of yen)

Number of Stores Opened/Closed

* Includes KAIKATSU SPA CLUB and KAIKATSU FITNESS CLUB


Closed

AOKI Fashion 370 15 2 349 10 3

M/X Fashion 40 2 3 - - -

Total 651 37 10 558 38 4

1

-

-

-

Stores Segment Number of stores Opened Closed

Fashion 34

11

97

99

6,617

Anniversaire/Bridal

43

1

Entertainment 5

-

-

Entertainment 111

Number of stores Opened

ORIHICA 26 6

1

2

19KAIKATSU CLUB, other * 83

Capital expenditures 5,755

ANNIVERSAIRE, WEDDING VILLAGE, PARTIRE GEIHINKAN 9

COTE D’AZUR 91

Capital expenditures:Interim FY3/08: Fashion 3,379 Anniversaire/Bridal 1,881 Entertainment 1,353Interim FY3/07: Fashion 2,883 Anniversaire/Bridal 1,654 Entertainment 1,217

Capital expenditures:Interim FY3/08: Fashion 3,379 Anniversaire/Bridal 1,881 Entertainment 1,353Interim FY3/07: Fashion 2,883 Anniversaire/Bridal 1,654 Entertainment 1,217

FY3/08Sales and Earnings Forecasts

20

Assumptions

Consolidated Forecast

Account/Period FY3/08 (forecast) FY3/07 Change YoY % Major components

Sales 128,300 112,143 16,156 114.4Contributions from new store openings in each business segment and consolidation of MARUFURU

Gross profitGross profit margin

59,72046.5%

51,73046.1%

40,841

10,8899.7%

2,685

1,825

11,749

168

1,575

5,151

115.4 Projecting 0.5 point improvements in Fashion Business

Sales & Administrative expense 47,620

7,989+0.4pt

6,778

1,210-0.3pt

-665

-355

900

-168

-170

116.6 Reflects higher store openings expenses in each business segment and MARUFURU

Non-operating expenses 1,470 80.5 Decline in expenses for sub-leased properties

348

Ordinary income 12,650 107.7

Extraordinary gains - -

Extraordinary losses 1,405 89.2

Net income 5,500 106.8

Operating profitOperating margin

12,1009.4% 111.1

Projecting higher profits in every business, but consolidation of MARUFURU will not start contributing to earnings until FY3/09

Non-operating profit 2,020 75.2 Decline in real estate leasing income from direct leases, and fewer commission income

(Millions of yen)

Capital expenditures: ¥11,000 million (Fashion ¥5,127 million, Anniversaire/Bridal ¥3,420 million, Entertainment ¥2,451 million)Depreciation: ¥4,100 millionFashion Business YoY existing-store sales: +1.8% for 1H, -1.1% for 2H, +0.1% for FY3/08

21

Forecast for Sales and Operating Profit by Business Segment

(Millions of yen)

(Millions of yen)

Business FY3/08 (forecast) FY3/07 Change YoY %

Total 12,100 10,889 1,210 111.1

Fashion 7,705


Entertainment 1,550 1,239 310 125.1

8,480

1,938

774

251

110.1

2,190 113.0

115.52,69617,40320,100Entertainment


Fashion

18,291

76,448

112,143

FY3/07

2,008

11,451

16,156

Change

111.020,300

115.087,900

114.4128,300Total

YoY %FY3/08 (forecast)Business

Sales by business segment

Operating profit by business segment

22

Plan for FY3/08Anniversaire and Bridal Business

Sales up 11.0% YoYExpect sales contribution from new facilities (THE GRAND at the 3rd floor of ANNIVERSAIRE OMOTESANDO, PARTIRE ESAKA WEDDING VILLAGE and PARTIRE SHIRAKABE GEIHINKAN )Expect contribution from full-year operation of facilities (Osaka, Kobe, Tachikawa) opened in FY3/07

Operating profit up 13.0% YoYOutlook based on sales growth and expected improvement in operating efficiency

In order to increase sales and improve profitability, we refine our business format and open more facilities

FY3/08 Plan

FY3/08 (forecast)YoY %YoY % % to sales

111.0 100.028.717.910.8

109.6107.6113.0

20,3005,8203,6302,190

SalesGross profitSG&A expensesOperating profit

PARTIRE SHIRAKABE GEIHINKAN (Nagoya)<to be opened November 2007>

To increase salesOpen more facilities, mainly in major cities nationwideMaintain and improve utilization rates at current facilitiesIncrease the unit price of food and beverages by offering new items

To improve profitabilityCut cost of investments in new facilities by standardizing interior designAim for higher operating efficiency by achieving a dominant presence in targeted areas

(Millions of yen)

=Facility capacity=Chapel:

120 persons (sit-down)Party spaces:Three spacesMaximum 130 persons

23

Plan for FY3/08Entertainment Business

Enhance business formats and reinforce the operating base by maximizing synergies of the karaoke and café complex facility operation

Store opening policiesPlan to add 29 facilities during FY3/08Adjust store opening to market trends and property availabilitiesAim to establish dominant market positions to raise brand recognition and cut operating expenses

Enhancing food serviceBoost sales by increasing food consumption at the KAIKATSU CLUBIncrease number of repeat customers by upgrading current services as well as planning and developing new content and services

Improving operating efficiencyCentralize activities like menu item development, procurement of food and beverages, and purchase of equipment and suppliesShare operating know-how to cut management expenses

Sales up 15.5% YoYExpect contributions from new facilities and facilities opened during FY3/07

(Millions of yen)

Operating profit up 25.1% YoYDue to earnings from facilities opened during FY3/07

FY3/08 Plan

FY3/08 (forecast)

YoY %YoY % % to sales115.5 100.0

17.09.3

Operating profit 1,550 125.1 7.7Number of stores 207

118.1112.9

20,1003,4201,870

SalesGross profitSG&A expenses

Note: Figures do not match non-consolidated VALIC figures due to eliminations for consolidation.

24

Outlook for Store Openings/Closings

(Stores, Millions of yen)

FY3/08 (forecast) FY3/07

Closed

4

1

M/X Fashion 33 2 10 (41) - -

Total 673 69 20 583*2 67 8

1

1

1

Stores Segment Number of stores

To be opened

To be closed

Fashion 383

38

12

101

106

11,000

Fashion

329

7

2Anniversaire/Bridal

11

4

-

2Entertainment

Entertainment 118

Number of stores Opened

AOKI 357 19

15

3

4

26

ORIHICA 35

KAIKATSU CLUB, other *1 89

Capital expenditures 9,257

ANNIVERSAIRE, WEDDING VILLAGE, PARTIRE GEIHINKAN 10

COTE D’AZUR 92

*1 Includes KAIKATSU SPA CLUB and KAIKATSU FITNESS CLUB. *2 M/X is included in the consolidation from FY3/08.

Capital expenditures: FY3/08 (forecast) Fashion 5,127 Anniversaire/Bridal 3,420 Entertainment 2,451FY3/07 Fashion 4,649 Anniversaire/Bridal 2,655 Entertainment 1,952

Capital expenditures: FY3/08 (forecast) Fashion 5,127 Anniversaire/Bridal 3,420 Entertainment 2,451FY3/07 Fashion 4,649 Anniversaire/Bridal 2,655 Entertainment 1,952

Fashion Business Results and Objectives

Interim FY3/07 Fashion BusinessAOKI & ORIHICA

Interim FY3/08 Fashion Business (Consolidated)

AOKI & ORIHICA & MARUFURU (M/X) (February 21 to August 20, 2007)

26

Fashion Business (Consolidated) Interim FY3/08 Performance

Significant sales and profit growth on strong sales of suits and formalwear

31,741

37,573

1,037

1,573

0

10,000

20,000

30,000

40,000


1,000

2,000

3,000

4,000

5,000

4.2%3.3%

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


Sales up 18.4% YoYExisting-store sales up 1.8% (vs. plan: +1.5%)• Reflects popularity of new business suit brand “Mote Slim”, and “Gokujo Cool”

AOKI stores at period-end: 370 (357 six months earlier)• Opened 15 stores, closed 2 stores, new logo at 78 stores

ORIHICA stores at period-end: 34 (35 six months earlier)• Opened 3 stores, closed 4 stores

M/X (MARUFURU) contributed to sales

Operating profit up 51.6% YoY AOKI existing-store operating profit up 28.5% Gross profit up 20.0%• Gross margin rose from 56.2% to 56.9%• Growth in business suit sales raised the gross margin

SG&A expenses up 18.1%• Newly opened stores raised sales promotion and

personnel expenses• Higher expenses for change in AOKI logo and store

remodeling

27

Fashion Business (AOKI&ORIHICA):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(%)

Number of customers declined slightly compared with last year when we implemented store renewal sales campaigns

Number of customers declined slightly compared with last year when we implemented store renewal sales campaigns

Sales per customer increased due to strong suit and formalwear sales, and benefits from fashion coordination recommendations

Sales per customer increased due to strong suit and formalwear sales, and benefits from fashion coordination recommendations

Existing-store sales up 1.8%Existing-store sales up 1.8%

Oct 2006

Nov 2006

Dec 2006

Jan 2007

Feb 2007

Mar 2007

Apr 2007

May 2007

Jun 2007

July 2007

Aug 2007

Sep 2007

First half

5.1 1.8

-3.1

5.1

-

1.2

Sales per customer (%) -10.0 0.1 1.5 2.7 1.6 10.3 1.1 9.1 4.1 6.9 3.9 5.8 4.3

-3.1

+1.9

6.4

0.6

+1.7

-9.3

-1.0

1.5

-2.5

+1.4

0.8

12.0

+1.3

Oct 2007

Existing-store sales (%) -1.3 2.3 5.6 8.9 9.2 3.3 1.7 0.8

No. of customers (%) -1.4 0.7 2.8 7.1 -1.0 2.1 -6.8

+1.1

-3.4

Difference from avg. temperature (Tokyo)

+1.4 +1.1 +1.8 +2.5 +1.9 -0.7 +0.8

Although the number of customers did not increase compared with last year when we implemented store renewal sales campaigns primarily at large-scale stores, suit and formalwear sales trended

strong, and sales per customer surged, driving existing store sales up 1.8% year-over-year

FY3/08 YoY Change in Monthly Performance

FY3/07 FY3/08

28

PerformanceAttracted more customers through installing new store signages and implementing renewal sales campaigns at 143 stores(Number of customers were 102.6% of the year-ago level at stores where we implemented renewal sales campaigns)Unit sales of suits surged to 109.6% of the year-ago level Sales increased as we opened 15 new stores in line with plans, and implemented collaborative sales campaigns with nearby stores Repeat customers* surged to 112.7% of the year-ago level at all stores as our roster of stylists reached 1,050 The ratio of labor expenses to sales declined 1.4pt, and the ratio of rent to sales declined 1.3pt

* A repeat customer is defined as one who visits stores more than three times a year, and who purchases more than ¥70,000 worth of products from the same sales person.

AOKI: First Half of FY3/08 Initiatives and Performance

InitiativesChange store signages to the new AOKI logo, and redesign stores to target the age group centered at 35Focus on suit sales by reviewing the product lineup as well as media used for sales promotions Win back top market share through successful new store openings, and stronger area marketing including collaboration with nearby storesWork to win repeat customers by improving customer satisfaction through expansion of our stylist system Improve operational efficiency and lower the expense allocation ratio through refining activities

Aggressive actions attracted customers to the “new AOKI”

29

ORIHICA: First Half of FY3/08 Initiatives and Performance

InitiativesStrengthen the product planning and development structure

Continue to polish the prototype

Improve recognition of the ORIHICA brand

PerformanceMen's

Clarified the customer profile (20-30 year olds that visit SCs), and enhanced product planning (changed colors and sizes that better appeal to targeted customers)Established a ladies suit style befitting the ORIHICA brand Strengthen ‘buying power’ through collaborative procurement with AOKI

Continued to polish the prototype while steadily expanding the store network Opened 3 stores, closed 4 stores, total 34 stores at period-end

Implemented various strategies to improve recognition of the ORIHICA brand Raised brand recognition among developers through continued opening of stores in SCsImproved image through placing adds in magazines (Gainer, Suits Catalog, Best Gear) read by targeted customers

Continued efforts to clarify customer profiles and polish the prototype

30

Outlook for the Second Half of FY3/08

Fashion trends

Increasing use of business-to-casual clothing by children of the baby-boom generation, rising popularity of slim styles, shift in demand from 3-button to 2-button business suitsIn middle age segment (35 to 50), increasing tendency to buy either high- or low-priced products (not intermediate) and rising interest in functional apparelGrowing demand for business-to-casual clothing to match life styles of the baby boom generation

Market and consumption

trends

Rising raw materials costs due to surging crude oil pricesNew business apparel styles and growth of casual wear market, both targeting the baby boom generation, which is now starting to enter retirementExpand new styling business through Cool Biz and Warm Biz campaignsExpected growth in share of specialty shops in the men’s wear market(Share of specialty shops: 46.5% in 2005, 47.5% in 2010 (est.), and 48.3% in 2015 (est.), according to “White Paper on the Textile Industry” by Yano Research Institute)

Trends in competition

Clear division between winners and losers among suburban men’s wear retailersGreater emphasis on clothing for womenUse of female celebrities to target specific market segmentsDevelopment of high-quality, value-added products and new brandsInnovation of two-price shops, and accelerated store openings Development of formats for shopping centers

“I’m glad that AOKI is here!” Reinforcing our position as the “best styling store” with the aim of becoming number one in customer satisfaction among apparel stores in

every area where an AOKI store is located.

Outlook for changes in the operating environment

31

MerchandiseChildren of baby boomers: Enhance lineup of ‘Mote Slim’ suits, and expand offering of ‘Mote Coats’Mid-range age segment : Offer ‘Gokujo Smart’ suits, and ‘Gokujo Reifuku’ formalwearBaby boom generation: Maximizing the styling of jackets as travel and business-to-casual apparel

Sales promotionsPromote “AOKI: Where Each Thread Counts” through the Internet and other media, to raise awareness of AOKI as a developer of high-quality productsDevelop coordinated sales plans, centered on TV commercials, involving products, sales promotions, sales floor space, and actual sales

AOKI: Second Half of FY3/08 Initiatives Strengthening of product offerings and marketings centered on total styling of heavy clothing

Sales/Personnel/TrainingDevelop new stores, and strengthen area marketing, to achieve top market share in each prefecture Raise the level of partner employees and all sales staff through deeper cultivation of the stylist system Establish an education system to train managers, store heads, and new partner employees

Store planning and developmentContinue store openings premised on “investment recovery in five years, and operating margin over 10.0%”Create prototype large-scale stores (example: Adachi-Takenotsuka store, a 250 tsubo piloti in a major city)

ExpensesImprove employee productivity by increasing efforts to improve business processesFurther increase efficiency of sales promotion activities by concentrating on media with high benefits relative to expensesContinue to conduct rent reduction negotiations

Raise operating margin to at least 10% through rigorous management of expense allocationRaise operating margin to at least 10% through rigorous management of expense allocation

32

MerchandiseTake advantage of procurement cost advantages by opening more stores and using AOKI’s buying power

Sales promotionsMake sales promotion activities more effective by concentrating on media with high benefits relative to expenses

Store planning and developmentPolish prototype stores Standardize all stores by type Open 7 stores annually

Sales/Personnel/TrainingLeverage the educational know-how of the AOKI stylist system for an ORIHICA version Train store managers in preparation for accelerated store openings

ORIHICA: Second Half of FY3/08 Initiatives

Improve profits, while strengthening the foundation for accelerated store openings, through synergies with AOKI

33

M/X: First-half Performance, Second-half Initiatives

Concept : Offer coordinated casual wear that targets mainly families in their 30’s to make their leisure time fulfilling and enjoyable

(Consolidated period 1H: Feb. 21, 2007 to Aug. 20, 2007 Full-year: Feb. 21, 2007 to Mar. 31, 2008)

Sharing of management principles

Problem-solving among project members of both companies (Ten divisions including product, sales, sales promotion, store development, logistics, systems, personnel, general affairs, accounting, and management planning)

Review of prototypes

Closing of unprofitable stores (1H : 3 stores closed)

Prototype experiments and verification Actively promote improvement activities Attract more customers through improvement of sales promotion activities Close unprofitable stores (2H: 7 store closings planned;Full-year: 10 store closings planned)

Implement “72nd anniversary sayonara sale”

First-half Initiatives Second-half Challenges

* Change company name to MX Inc. (the same name as the store) effective March 1, 2008 To refresh the company image for strong future growth, and promote business expansion based on the provision of high-quality products and services

34

AOKIEstablish and standardize the new AOKI format by replacing store signages with the new logo and remodeling stores (We plan to finish changing all store signages by March 2008)Open more than 25 new stores (re-launch nationwide store opening policy)Remodel existing large stores and open new large stores that can attract many customers

ORIHICAOpen more stores at new and existing shopping centers in the Tokyo and Osaka areasUse stores at new shopping centers to raise awareness of the ORIHICA brand; use new stores at existing shopping centers to add stores that are highly profitable

Open stores using the AOKI and ORIHICA formatsGoal is raising men’s apparel market share in targeted areas

Store Network Strategy

FY3/08 Store Opening Plan

Continue to expand the store network to capture market share while maintaining operating profit margins above 10%

Interim FY3/08Number of stores (AOKI & ORIHICA) 0

1 to 56 to 1011 to 2021 to 3031 or more

First half Second half

14

1

383

Open 3 4 7Close 4 - 4

Term-end 34 38 38

7

ORIHICA

Open 2 - 2

33

454

AOKI

M/XTerm-end 40 33

Full year

Open

Total

Close

15

2

370

3

Term-end

Close

444Term-end

29

3

383

10

454

35

FY3/08 Earnings Forecast

Operating profit up 10.1% YoYProjecting higher operating profit as improvement in gross margin cover higher expensesProjecting higher earnings at existing storesGross margin rise from 56.9% to 57.4%Expect 17.3% increase in SG&A expenses

• Higher sales promotion and personnel expenses due to new store openings

• Increase in expenses for new signages and store remodeling

• Increase due to consolidation of MARUFURU

Sales up 15.0% YoYExisting-store sales (AOKI & ORIHICA): up 0.1% YoYPlan for new storesAOKI: 29 (15 in 1H and 14 in 2H)ORIHICA: 7 (3 in 1H and 4 in 2H)M/X (MARUFURU) will contribute to sales (*)

87,900

66,84676,44874,403

6,0827,280

7,705

8,480

0

20,000

40,000

60,000

80,000

FY3/05 FY3/06 FY3/07 FY3/08 (plan)0

2,500

5,000

7,500

10,000

9.6%10.1%9.8%9.1%

Aiming for sixth consecutive year of sales and earnings growth. Plan to increase heavy and medium clothing sales to offset higher expenses

associated with the anticipated large number of new stores

* MARUFURU will have an irregular fiscal year lasting 13 months and 10 days from Feb. 21, 2007 to Mar. 31, 2008

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

Note: Heavy clothing: Suit, coat, formal wearMedium clothing: Jacket, slacks


Supplementary Documents

37

Interim FY3/08 Consolidated Business Results

Interim FY3/08 Results % Interim FY3/08

Plan % Interim FY3/07 Results % YoY change YoY %

Sales 57,063 100.0 56,400 100.0 48,556 100.0 8,506 117.5Fashion 37,573 100.0 37,400 100.0 31,741 100.0 5,832 118.4

Anniversaire/Bridal 9,795 100.0 9,490 100.0 8,468 100.0 1,326 115.7Entertainment 9,693 100.0 9,510 100.0 8,346 100.0 1,346 116.1

Gross profit 25,781 45.2 25,250 44.8 21,613 44.5 4,167 119.3Fashion 21,393 56.9 21,070 56.3 17,826 56.2 3,567 120.0

Anniversaire/Bridal 2,698 27.6 2,670 28.1 2,467 29.1 230 109.4Entertainment 1,674 17.3 1,510 15.9 1,324 15.9 350 126.4

SG&A expenses 22,543 39.5 22,820 40.5 19,253 39.7 3,290 117.1Fashion 19,819 52.7 19,990 53.4 16,788 52.9 3,031 118.1

Anniversaire/Bridal 1,754 17.9 1,830 19.3 1,641 19.4 113 106.9Entertainment 924 9.5 950 10.0 822 9.9 101 112.4

Operating profit 3,237 5.7 2,430 2.5 2,359 4.9 877 137.2Fashion 1,573 4.2 1,080 2.9 1,037 3.3 535 151.6

Anniversaire/Bridal 944 9.6 840 8.9 826 9.8 117 114.2Entertainment 750 7.7 560 5.9 502 6.0 248 149.4

Ordinary income 3,547 6.2 2,860 3.3 2,850 5.9 696 124.4Net income 1,470 2.6 1,000 1.8 1,142 2.4 328 128.7Earnings per share (Yen) 32.71 - 22.33 - 25.30 - 7.41 -Shares outstanding at period-end (Shares) 45,064,000 - 44,785,000 - 44,872,000 - 191,000 -


Notes: 1. Earnings divided by weighted average number of common shares (excluding treasury stock).2. All amounts are rounded down to million yen.

38

Interim FY3/08 SG&A Expenses


Note: The sum of business segment items does not match the totals because totals include other businesses and inter-segment eliminations.

Interim FY3/08 Results Interim FY3/07 Results

Total Fashion Anniversaire/ Bridal Entertainment Total Fashion

Anniversaire/ Bridal

Entertainment

YoY % YoY % YoY % YoY %

2,558

7,145

4,099

1,007

Advertising & marketing

3,264 127.6 2,706 129.2 449 121.5 101 109.9 2,094 370 92

Personnel costs 8,482 118.7 7,375 117.9 506 104.2 537 135.2 6,254

4,029

925

Rents 4,712 115.0 4,647 115.3 16 67.0 45 102.8

397486

24 44

74 7Depreciation & amortization

1,160 115.2 1,090 117.8 60 80.3 6 91.4

39

FY3/08 Consolidated Forecast

FY3/08 Plan % FY3/07

Results % YoY change YoY %

Sales 128,300 100.0 112,143 100.0 16,156 114.4Fashion 87,900 100.0 76,448 100.0 11,451 115.0

Anniversaire/Bridal 20,300 100.0 18,291 100.0 2,008 111.0Entertainment 20,100 100.0 17,403 100.0 2,696 115.5

Gross profit 59,720 46.5 51,730 46.1 7,989 115.4Fashion 50,480 57.4 43,521 56.9 6,958 116.0

Anniversaire/Bridal 5,820 28.7 5,310 29.0 509 109.6Entertainment 3,420 17.0 2,895 16.6 524 118.1

SG&A expenses 47,620 37.1 40,841 36.4 6,778 116.6Fashion 42,000 47.8 35,816 46.9 6,183 117.3


Operating profit 12,100 9.4 10,889 9.7 1,210 111.1Fashion 8,480 9.6 7,705 10.1 774 110.1


Ordinary income 12,650 9.9 11,749 10.5 900 107.7Net income 5,500 4.3 5,151 4.5 348 106.8Earnings per share (Yen) 122.05 - 114.47 - 7.58 -Shares outstanding at period-end (Shares) 45,064,000 - 44,785,000 - 279,000 -


Note: * Earnings divided by weighted average number of common shares (excluding treasury stock).

40

FY3/08 SG&A Expenses Forecast


FY3/08 Plan FY3/07 Results

Total Fashion Anniversaire/ Bridal Entertainment Total Fashion Anniversa

ire/BridalEntertain

ment

YoY % YoY % YoY % YoY %

6,808

14,824

8,320

2,138

Advertising & marketing

8,260 121.3 7,030 120.2 980 131.2 250 126.9 5,847 747 197

Personnel costs 17,000 114.7 14,890 115.2 1,030 109.6 1,080 125.0 12,926

8,173

2,044

Rents 9,703 116.6 9,590 117.3 23 39.7 90 101.1

864940

58 89

157 14Depreciation & amortization

2,595 121.4 2,450 119.9 132 84.1 13 92.9

Note: The sum of business segment items does not match the totals because totals include other businesses and inter-segment eliminations.

41

Reference: Interim FY3/08 Fashion Business Performance

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

FY3/08 53.0 109.6

FY3/07 48.3 118.0 71.7 111.1 120.0 113.8

FY3/08 25.0 101.6

FY3/07 24.6 100.0 24.1 100.4 24.3 100.4

Unit price

Sales volume

2.83.94.4-0.61.15.50.1-1.81.6FY3/07

6.45.1-3.11.51.73.31.8FY3/08

Full yearSecond halfSep.Aug.Jul.Jun.MayApr.First half

FY3/07

FY3/08

FY3/07

FY3/08

-3.4

5.1

5.2

-3.1

First half

-0.7

3.5

Full year

-0.5

5.8

4.9

0.6

Sep.

-1.7

6.9

2.9

-9.3

Jul.

-5.5

9.1

5.9

-6.8

May

1.2-2.52.1Customers

1.2-0.3-8.22.0

3.94.11.1Sales per customer

2.6-0.314.9-3.7

Second halfAug.Jun.Apr.

(Non-consolidated)(1) Change in Fashion Business existing-store sales (%)

(%)

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

(10,000 outfits, Thousands of yen, %)(3) Business suit sales volume and unit prices in Fashion Business

42

(Millions of yen, %)(4) Fashion Business sales by category

(5) Average total sales area for Fashion Business (Sq.m.)

Interim FY3/08 Results

%Interim FY3/08 Plan

%Interim FY3/07 Results

% YoY change YoY %

Heavy clothing 17,939 52.4 17,200 50.7 16,100 50.6 1,838 111.4

99.5

105.4

Other 881 2.6 850 2.5 815 2.6 66 108.1

107.8

Medium clothing 4,168 12.2 4,350 12.8 4,188 13.2 -20

Light clothing 11,215 32.8 11,500 33.9 10,636 33.5 579

Total 34,205 100.0 33,900 100.0 31,741 100.0 2,463

Interim FY3/08 Interim FY3/07 YoY change YoY %

235,724 223,076 12,648 105.7

Definition: Heavy clothing: Suit, coat, formal wearMedium clothing: Jacket, slacksLight clothing: Casual wear, shirt and all other clothing and accessories

43

Interim FY3/08 FY3/07FY3/07

No. of stores opened (incl. Transferred)

11

12

Chiba 3(1) 45(6) 42(5)Tokyo 3(1) 2(2) 52(5) 51(6)

1(1)

1

1

31

18(3)

No. of stores closed No. of stores at period-endHokkaido

No. of stores at periodNo. of stores at period--endend

11(1)

1

1(1)

Iwate

6(4)

101024

5(1)14(1)8(1)

848(4)

43(6)8(1)

7725

22165

38(2)932

24(3)13(4)

Miyagi

13

23

5(1)15(2)8(1)

746(4)

42(5)8(1)

7725

2216

Gifu 5

404(34)

37(2)932

21(3)13(5)

FukushimaIbarakiTochigiGunmaSaitama

13

392(35)

KanagawaNiigataToyamaIshikawaFukuiYamanashiNaganoShizuoka

AichiMieShigaKyotoOsakaHyogoNaraHiroshimaTotal

* Excludes M/X

(6) Fashion Business store network by prefecture

Note: Figures in parenthesis represent number of ORIHICA stores.

44

Reference: FY3/08 Fashion Business Outlook(Non-consolidated)

(%)

(%)

(1) Change in Fashion Business existing-store sales

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

First half (results) Second half Full year

FY3/08 (plan) 1.8 -1.1 0.1

FY3/07 1.6 3.9 2.8

First half (results) Second half Full year

FY3/08 (plan) -3.1

FY3/07

FY3/08 (plan)

FY3/07

5.2

5.1

-3.4

-3.1

3.5

3.3

-0.7

-3.0Customers

2.6

2.0Sales per customer

1.2

45

(Millions of yen)(3) Fashion Business sales plan by category

FY3/08 Plan % FY3/07 FY3/07

ResultsResults % YoY change YoY %

107.3

99.4

104.0

103.3

105.3

Other 1,850 2.3 1,791 2.3 58

Heavy clothing 43,950 54.6 40,945 53.6

Total

Medium clothing 7,850 9.8 7,897 10.3

3,004

-47

1,035Light clothing 26,850 33.4 25,814 33.8

80,500 100.0 76,448 100.0 4,051