DAIICHIKOSHO

CO.,

LTD.

FY 2004, the year ended March 31, 2005
Summary of Nonconsolidated Financial Statements for the Year Ended March 31,
2005
May 16, 2005

Company Name: DAIICHIKOSHO CO., LTD.
Code Number: 7458
(URL http://www.dkkaraoke.co.jp)
Stock Exchange Listing: JASDAQ

Location of Head Office (Prefecture): Metropolis of Tokyo
Representative: Tatsuyoshi Yoneda, President
Contact: Eiji Hata, Director and Corporate officer; and Executive Director, Administration Headquarters
Phone: (03) 3280-2151
Date of the Board of Directors Meeting on the Closing of Accounts: May 16, 2005
Interim Dividend System: Applied
Date of the Ordinary General Meeting of Shareholders: June 26, 2005
Unit (tangen) Stock System: Adopted (Unit (tangen) stock of shares: 100 shares)
Start Date for Payment of Dividends: June 27, 2005
1. Nonconsolidated Performance for FY2004, the Year Ended March 31, 2005 (from April 1, 2004, to
March 31, 2005)(1) Nonconsolidated operating results
Note: Amounts below one million yen are truncated.
Net sales¥ Million

Year ended March 2005
Year ended March 2004

82,86280,711%
2.7
7.7¥ Million
3,939
4,679

¥ Million%(21.1)
0.6

Net income per share%(15.8)
7.6

Return of Equity (ROE)
Year ended March 2005
Year ended March 2004

Ordinary income¥ Million

6,447
8,170

Net income
Year ended March 2005
Year ended March 2004

Operating income

%
7.7
9.7

6,490
7,531

%
(13.8)
0.3¥
109.74129.47

Fully diluted net income
per share¥―
123.22

Ratio of ordinary income
to total capital
%
7.7
8.8

Ratio of ordinary income
to net sales
%
7.8
9.3

Notes: 1. Average number of shares outstanding during the year:
Year ended March 2005: 35,745,780 sharesYear ended March 2004: 35,958,418 shares
The Company conducted a two-for-one stock split on May 20, 2004. For comparison, “Net income pershare” and “Fully diluted net income per share” are stated in the table above as if the stock split had
occurred as of April 1, 2003.
“Fully diluted net income per share” for the year ended March 2005, is not stated because no residual
securities existed as convertible bonds were redeemed at maturity as of March 31, 2005.
2. Change in accounting method: None
3. Percentages for net sales, operating income, ordinary income and net income show respective
year-over-year changes from the previous fiscal year.

1

DAIICHIKOSHO

CO.,

LTD.

(2) Dividends
Annual dividend per share
InterimYear-end

Total amount ofdividends (annually)¥ Million
1,392

Payout ratio

Ratio of dividends to shareholders’ equity
%
2.7

¥
¥
¥
%
Year Ended
40.00
0
40.00
36.5
March 2005
Year Ended
19.00
0
19.00
682
14.7
1.3
March 2004
Note: The breakdown of the dividends for the year ended March 2005 was ¥20.00 in ordinary dividend and ¥20.00
in 30th anniversary commemorative dividend.
The Company conducted a two-for-one stock split on May 20, 2004. For comparison, “Annual dividend pershare” is stated in the table above as if the stock split had occurred as of April 1, 2003.

(3) Nonconsolidated financial position
Total assets

Shareholders’equity¥ Million¥ Million

Equity ratio

Shareholders’equity per share%¥

Year ended March 2005
80,11251,02163.7
1,465.47
Year ended March 2004
88,57850,81557.4
1,413.14
Notes: 1. Number of shares outstanding at the end of the year:
34,804,216 shares at March 31, 2005
35,942,520 shares at March 31, 2004
The Company conducted a two-for-one stock split on May 20, 2004. For comparison, “Shareholders’equity per share” is stated in the table above as if the stock split had occurred as of April 1, 2003.
2. Number of treasury stocks at the end of the year:
1,817,082 shares at March 31, 2005
339,203 shares at March 31, 2004

2. Forecast Nonconsolidated Performance for FY2005, the Year Ending March 31, 2006 (from April 1,
2005, to March 31, 2006)
Net sales

Ordinary income

Net income¥ Million¥ Million¥ Million

¥

¥

¥

450

0

―

―

1,800

―

30.00

30.00

Interim period
44,2003,200
ending September 30, 2005
Year ending
88,4005,700March 31, 2006
(full year)(Reference) Forecast net income per share (full year): ¥51.24

Annual dividend per share
InterimYear-end

Note: These projected performance figures are based on information available to the Company’s management at thetime of preparing this report. There are many uncertain factors inherent in forecasting, and there might becases in which actual results differ from forecast values. See page 11 of the Attachment for further information
on forecasts.

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DAIICHIKOSHO

CO.,

LTD.

6. Nonconsolidated Financial Statements(1) Nonconsolidated Balance Sheet
Fiscal year

Account item
(Assets)
Current assets
Cash and bank deposits
Notes receivable―trade
Accounts receivable―tradeMarketable securities
Merchandise
Finished products
Work in process
Advance money
Prepaid expenses
Deferred tax assets
Current portion of long-term loans
receivable from subsidiaries and affiliates
Other
Allowance for doubtful accounts
Total current assets
Fixed assets
Tangible fixed assets
Buildings
Structures
Tools, furniture and fixtures
Karaoke equipment for rental
Karaoke cabin facilities
Land
Other
Total tangible fixed assets
Intangible assets
Patent rightLeasehold
Trademark right
SoftwareSound delivery/video software
Other
Total intangible assets
Investments and other assets
Investments in securities
Investment in stocks of subsidiaries
and affiliates
Investment in capital
Investment in capital of subsidiaries
and affiliates
Long-term loans receivable
Claims in bankruptcy, reorganization
claims and similar claims
Long-term prepaid expenses

FY 2003(As of March 31, 2004)
AmountComposition ratio(%)(Millions of yen)
FY 2004
Year-over(As of March 31, 2005)year
changeAmountComposition ratio(%)

17,476
1,136
6,609
121
2,592
49
781
313
683
3,340
327

11,010
783
6,270
―
4,546
―
―
510
1,501
2,880
―

(6,466)
(352)
(339)
(121)
1,953
(49)
(781)
197
818
(460)
(327)

588
(451)
33,571

37.9

588
(489)
27,601

34.5

(0)
(38)
(5,969)

23.3

1,721
177
1,168
4,628
8,296
3,506
159
19,65924.5(1,519)
(86)
411
239
1,304
(1,346)(6)(1,003)

9.5

2
44
2
3,963
3,847
208
8,067

10.0

(0)
―
0
152
(522)
(0)
(370)

3,241
263
757
4,388
6,992
4,853
165
20,662
2
44
1
3,811
4,369
208
8,437
6,341
5,080

6,123
4,001

(218)
(1,078)

685
100

64
116

(621)
16

5,373
968

4,860
1,146

(512)
178

100

702

601

3

DAIICHIKOSHOFiscal year

Account item
Deferred tax assets
Prepaid plan assets
Leasehold deposits and guarantee
money
Other
Allowance for doubtful accounts
Total investments and other assets
Total fixed assets
Total Assets

CO.,

FY 2003(As of March 31, 2004)
AmountComposition ratio
(%)
963
1,015
9,860
311
(4,893)25,90755,007
88,578

29.3
62.1
100.0

4

LTD.

FY 2004(As of March 31, 2005)
AmountComposition ratio
(%)
1,242
1,041
10,365302(5,183)24,78452,51080,112

31.0
65.5
100.0

Year-overyearchange

279
25
505
(9)
(289)
(1,122)(2,497)(8,466)DAIICHIKOSHOFiscal year
Account item
(Liabilities)
Current liabilities
Notes payable―trade
Accounts payable―trade
Short-term borrowings
Convertible bonds redeemablewithin one year
Current portion of long-term borrowings
Accounts payable―otherAccrued expenses
Income taxes payable
Consumption taxes payable
Unrealized profit on installment
sales
Reserve for bonuses
Other
Total current liabilities
Long-term liabilities
Long-term borrowings
Reserve for employees’ retirement
benefits
Reserve for directors’ retirement allowances
Other
Total long-term liabilities
Total Liabilities(Shareholders’ Equity)
Capital stock
Capital surplus
Capital reserve
Other capital surplus
Gain on decrease in capital stockand capital reserve
Gain on disposal of treasury stock
Total capital surplus
Retained earnings
Voluntary reserve
General reserve
Unappropriated retained earnings
Total retained earnings
Land revaluation difference
Net unrealized gains or losses onavailable-for-sale securities
Treasury stock
Total Shareholders’ Equity
Total Liabilities and Shareholders’EquityCO.,LTD.

FY 2003 (Year ended March 31, 2004)
AmountComposition ratio(%)

FY 2004 (Year ended March 31, 2005)
AmountComposition ratio(%)

Year-overyearchange

2,556
3,049
600
10,799

2,538
3,547
600
―

(17)
498
―
(10,799)

3,400

4,130

730

4,711
205
161
267
176

5,169
196
343
47
85

457
(8)
182
(219)
(91)

605
582
27,116633
373
17,66727(208)(9,448)

30.6

22.0

8,049
1,026

8,616
1,115

567
88

1,130

1,252

121

440
10,64737,763

12.0
42.6

439
11,42429,091

14.3
36.3

(0)
776
(8,671)

12,34914.0

12,350

15.4

0

4,001

4,002

0

20,00020,000―0024,00127.1

18,602
1,114

24,00229.9

0
118,602
380
19,716(5,761)
1,277

22.3
(6.5)
1.4

18,982(1,794)
1,109

23.7
(2.2)
1.4

―
(734)
(734)
3,966
(167)

(767)
50,81588,578

(0.9)
57.4
100.0

(3,629)51,021
80,112

(4.5)
63.7
100.0

(2,861)
205(8,466)

5

DAIICHIKOSHO

CO.,

LTD.

(2) Nonconsolidated Statement of Income
Fiscal year
Account item
Net sales
Cost of sales
Gross profit before adjustment for
unrealized profit on installment sales
Unrealized profit on installment
sales─reversal (+)
Unrealized profit on installment
sales─deferred (–)
Gross profit on sales
Selling, general and administrative
expenses
Operating income
Nonoperating income
Interest and dividend income
Fees and commissions received
Other
Nonoperating expenses
Interest expense
Loss on valuation of inventories
Loss on disposal of inventories
Provision for allowance for doubtful
accounts
Other
Ordinary income
Extraordinary gains
Gain on sales of fixed assets
Reversal of allowance for doubtful
accounts
Gain on sales of investments in securities
Indemnity on relocation of warehouse
Extraordinary losses
Loss on sales and disposal of fixed
assetsLoss on valuation of investments insecurities
Loss on valuation of investment instocks of subsidiaries and affiliates
Loss on sales of investments in securities
Provision for reserve for directors’
retirement allowances for prior years
Loss on arrangement of subsidiaries
and affiliates
Income before income taxes
Income taxes―current
Income taxes―deferred
Net income
Surplus brought forward from theprevious year
Reversal of land revaluation difference
Unappropriated retained earnings

FY 2003 (From April 1, 2003, to
March 31, 2004)
AmountPercentage(%)
80,711
100.0
51,21763.5
29,493
36.5
231
106

557
164
327

135
125

0.2

29,61921,448
8,170

1,049

91

0.1

36.7
26.6

28,08021,632

33.9
26.1

94.8
100.9

10.1

6,447

7.8

78.9

1,074

1.3

102.4

1,031
6,490

1.3
7.8

61.1
86.2

1,164

1.4

274.5

3,308

4.0

126.2

4,345

5.2

81.5

406
3,939
408

0.5
4.7

84.2

1.3

202
198
414
500
372

(Millions of yen)
Year-overFY 2004 (From April 1, 2004, to
year
March 31, 2005)
AmountPercentage change(%)(%)
82,862100.0
102.7
54,874
66.2
107.1
27,988
33.8
94.9

44

553
140
380
189
101
56
451

1,688
7,531

2.1
9.3

232

14
201

189
97

208

748

―

424

0.5

128

1,136

2,149

77

27

303

1,124

―

6

1,097

―

5
100
555

2,621

3.2

5,334

6.6

655
4,679
679

0.8
5.8

―
112
294

(4,243)(3,966)

1,114

380

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DAIICHIKOSHO

CO.,

LTD.

(3) Proposal for Appropriation of Retained Earnings
Fiscal year
Account item
Unappropriated retained earnings
Reversal of voluntary reserve
Reversal of general reserve
Total
To be appropriated as follows:
Amounts of profit appropriation:
Cash dividends
Bonuses to directors(including those to statutory auditors)
Retained earnings to be carried forward
Note:

FY 2003 (Year ended March 31, 2004)
Amount
1,114
-

1,114

682
23
(3)

706
408

(Millions of yen)
FY 2004 (Year ended March 31, 2005)
Amount
380
2,000

1,392
16
(1)

2,000
2,380

1,408
971

Breakdown of the dividend per share(¥)
FY 2003 (Year ended March 31, 2004)
AnnualInterimYear-end
19.00
0.0
19.00

FY 2004 (Year ended March 31, 2005)
AnnualInterimYear-end
40.00
0.0
40.00

Common share(Breakdown)
Ordinary dividend
19.00
0.0
19.00
20.00
0.0
20.00
30th anniversary com0.00
0.0
0.00
20.00
0.0
20.00
memorative dividend
Note: The Company conducted a two-for-one stock split on May 20, 2004. For comparison, “Dividend per share” amounts are stated in
the table above as if the stock split had occurred as of April 1, 2003.

7

DAIICHIKOSHO

CO.,

LTD.

Significant Accounting Policies
1. Valuation basis and method for securities(1) Investment in stocks of subsidiaries and affiliates:
Stated at cost determined by the moving-average method.
(2) Other securities:
Other securities primarily designated as available-for-sale securities for which the fair values are readily
determinable:
Carried at fair value as of the balance-sheet date with changes in net unrealized holding gain or loss, net of the applicable income taxes, included directly in shareholders’ equity. The cost of securities sold is determined by themoving-average method.
Other securities primarily designated as available-for-sale securities for which the fair values are not readily
determinable:
Carried at cost determined by the moving-average method.

2. Valuation basis and method for inventories
Merchandise and finished products:
Carried at cost determined by the moving-average method.

3. Depreciation method of fixed assets(1) Tangible fixed assets
Depreciation is computed by the declining-balance method at rates based on the estimated useful lives of the assets
as shown below. However, the straight-line method is adopted for buildings (excluding building improvements)
acquired on or after April 1, 1998.
Buildings and structures: 3–50 years
Karaoke equipment for rental: 5–6 years
Karaoke cabin facilities: 3–19 years(2) Intangible assets
Amortization of intangible assets is computed by the straight-line method. Computer software for internal use isamortized by the straight-line method over the estimated useful life (five years), and sound delivery and video
software is amortized by the straight-line method over two years.
(3) Long-term prepaid expenses
Straight-line method is adopted.

4. Accounting standards for reserves(1) Allowance for doubtful accounts
The allowance for doubtful accounts is provided at an amount of possible losses from uncollectible receivables
based on the actual rate of losses from bad debt for ordinary receivables, and on the estimated recoverability forspecific doubtful receivables.
(2) Reserve for bonuses
The reserve for bonuses is provided at an estimated amount based on DK’s internal payment prediction standard.
(3) Reserve for employees’ retirement benefits:
The reserve for employees’ retirement benefits is provided at an amount recognized to have accrued as of the balance-sheet date, based on the projected benefit obligations and plan assets as of March 31, 2005.
Actuarial differences are amortized on a pro rata basis by the straight-line method over a certain period (10 years),
which is shorter than the average remaining service years for employees at the time of their recognition, from thefollowing fiscal year of recognition.
(4) Reserve for directors’ retirement allowances:
The reserve for directors’ retirement allowances is provided at an amount that would be required to be paid in accordance with the DK’s internal rules concerning directors’ retirement allowances if all eligible directors and statutory auditors were to resign their positions as of the balance-sheet date.

5. Accounting for leases
Finance leases that do not transfer ownership of leased property to the lessee are accounted for as rental transactions.

8

DAIICHIKOSHO

CO.,

LTD.

6. Accounting for installment sales
DK’s installment profit involved in installment sales is deferred for the amount corresponding to the portion of installment receivables for which the due date has not expired.

7. Accounting for consumption tax, etc.
Consumption taxes are accounted for using the tax exclusion method. Consumption taxes related to installment sales aredeferred for the amount corresponding to the portion of installment receivables for which the due date has not expired.

Additional Information
Presentation of Pro Forma Taxation Components of Corporate Income Tax on the Nonconsolidated
Statement of Income:Pursuant to the public announcement of the Practical Compliance Report No. 12 “Practical Treatment of the Presentation of
Pro Forma Taxation Components of Corporate Income Tax on the Statement of Income” (by the Accounting Standards
Board of Japan, February 13, 2004), DK treats the values of corporate income tax divided by the value added-value and bycapital stock as components of selling, general and administrative expenses, based on the practical compliance report,
effective from the year ended March 31, 2004.
As a result, selling, general and administrative expenses increased ¥171 million year over year, and operating income,ordinary income and income before income taxes each decreased by the same amount.

9

DAIICHIKOSHO

CO.,

LTD.

Notes to Nonconsolidated Financial Statements(Nonconsolidated Balance Sheet)
1. Accumulated depreciation for tangible fixed assets

As of March 31, 2004
23,102(Millions of yen)
As of March 31, 2005
22,058

2. Liabilities for guarantee
Liabilities for guarantee
Guarantee by subscription
Letter of undertaking on management services
Total

3,928
301
4,230

3,350
375
58
3,784

10,000―10,00010,000―10,000

3 Commitment line contract
Total amount of commitment line contracts
Residual amount of borrowed funds
On balance

4. DK revalued the land used for its business based on the provisions prescribed in the Law Concerning
Revaluation of Land (1998 Law No.34). The resulting revaluation difference is included in shareholders’ equity as “Land revaluation difference.”(1) Date of revaluation: March 31, 2001
(2) Revaluation method:
The value of land is calculated by reasonably adjusting the “land prices calculated under the method determined
and announced by the Director-General of the National Tax Administration Agency for calculating land value as
the basis of calculating taxable prices of land value tax set forth in Article 16 of the Land Value Tax Law,” stipulated in Article 2, Item 4, of the “Ordinance Implementing the Law Concerning Revaluation of Land (1998 Government Ordinance No. 119).”(3) The difference between the total market values of the revalued land for business use as of March 31,(¥ 167 million)
2005, and the total carrying amounts after the revaluation:

Increase in the number of shares outstanding during the year ended March 31, 2005
Date of issuance
April 21, 2004
May 20, 2004

Issuance category
Conversion of convertible bonds
Stock split(two-for-one)

Number of sharesissued372

Issue price (¥)

18,310,463―

10

5,371.2

Amount credited tocapital stock (¥)
2,686―

DAIICHIKOSHO

CO.,

LTD.

(Leases)
1. Finance lease contracts that do not transfer ownership of leased property to the lessee(1) Assumed data as to acquisition cost, accumulated depreciation and net book value of leased assets as ofMarch 31, 2004 and 2005

Tools, furniture and fixtures
Karaoke cabin facilities
Total

FY 2003 (From April 1, 2003, to March 31, 2004)
Acquisition
Accumulated
Net book
cost
depreciation
value
2,423
1,281
1,142
303
247
55
2,726
1,529
1,197

(Millions of yen)
FY 2004 (From April 1, 2004, to March 31, 2005)
Acquisition
Accumulated
Net book
cost
depreciation
value
2,170
938
1,232
99
90
9
2,270
1,028
1,241

(2) Assumed future lease payments as of March 31, 2004 and 2005, under finance leases
Due within one year
Due after one year
Total

As of March 31, 2004
668
540
1,209

(Millions of yen)
As of March 31, 2005
501
747
1,248

(3) Lease payments, and assumed depreciation expense and interest expense
Lease payments
Assumed depreciation expense
Assumed interest expense

As of March 31, 2004
828
807
15

(Millions of yen)
As of March 31, 2005
722
706
11

(4) Computation method of assumed depreciation expense
Depreciation expense is computed by the straight-line method, assuming the lease period as the useful life and no residual value.

(5) Computation method of assumed interest expense
The difference between the total lease contract amount and the assumed acquisition cost is assumed to be interest,and interest expense is computed by the interest method.

2. Operating lease contracts
Future lease payments under operating leases
Due within one year
Due after one year
Total

As of March 31, 2004
331
2,144
2,476

(Millions of yen)
As of March 31, 2005
324
1,817
2,142

(Securities)
DK had no available-for-sale securities for which the fair value was readily determinable in its investment in stocks ofsubsidiaries and affiliates for the years ended March 31, 2004 and 2005.

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DAIICHIKOSHO

CO.,

LTD.

(Tax-Effect Accounting)
1. Breakdown by cause of deferred tax assets and liabilities(Millions of yen)

FY 2003 (as of March 31, 2004)
Deferred tax assets:
Loss brought forward
Loss on valuation of investment instocks of subsidiaries and affiliates
Allowance for doubtful accounts
Loss on valuation of investments in securities
Reserve for employees’ retirement
benefits
Reserve for directors’ retirement allowances
Reserve for bonuses
Loss on valuation of inventories
OthersDeferred tax assets: subtotal
Valuation reserve
Total deferred tax assets
Deferred tax liabilities:
Net unrealized gains or losses on available-for-sale securities
Prepaid plan expense
Net deferred tax assets

FY 2004 (As of March 31, 2005)
Deferred tax assets:
Loss brought forward
Loss on valuation of investment in stocks
of subsidiaries and affiliates
Allowance for doubtful accounts
Loss on valuation of investments in securities
Reserve for employees’ retirement benefits
Reserve for directors’ retirement allowances
Reserve for bonuses
Loss on valuation of inventories
OthersDeferred tax assets: subtotal
Valuation reserve
Total deferred tax assets
Deferred tax liabilities:
Net unrealized gains or losses on available-for-sale securities
Prepaid plan expense
Net deferred tax assets

3,724
1,574
1,808
865
336
458
245
33
242
9,288
(3,703)
5,584
(869)
(411)
4,304

3,119
2,029
1,985
499
412
507
268
48
306
9,176
(3,876)
5,300
(755)
(421)
4,123

2. Reconciliation between the statutory income tax rate and the effective income tax rate after the
adoption of tax-effect accounting%%
FY 2003 (as of March 31, 2004)
FY 2004 (As of March 31, 2005)
Statutory income tax rate
Reconciliation items:
Reversal of unrecognized land revaluationdifferenceEntertainment expenses and others, which
are permanently nondeductible
Dividend income and others, which arepermanently excluded from taxable income
Per capita inhabitant’s tax
Valuation reserve
Others
Effective income tax rate after the adoptionof tax-effect accounting

42.0

Statutory income tax rate

(33.4)
2.6
(3.4)
1.9
0.9
1.7
12.3

12

Reconciliation items:
Reversal of unrecognized land revaluation differenceEntertainment expenses and others,
which are permanently nondeductible
Dividend income and others, which arepermanently excluded from taxable income
Per capita inhabitant’s tax
Valuation reserve
Others
Effective income tax rate after the
adoption of tax-effect accounting

40.5(37.0)
3.0
(4.3)
2.6
4.0
0.6
9.4

DAIICHIKOSHO

CO.,

LTD.

(Per Share Data)
Item
Shareholders’ equity per share

FY 2003 (From April 1, 2003, to
March 31, 2004)¥2,826.29

FY 2004 (From April 1, 2004, to
March 31, 2005)¥1,465.47

Net income per share¥258.95¥109.74

Fully diluted net income per share¥246.44-----------

Notes: 1. The Company conducted a two-for-one stock split on May 20, 2004. The per share data for FY 2003, the year
ended March 31, 2004, supposing that the stock split was conducted as of April 1, 2003, was as follows:
Shareholders’ equity per share
Net income per share
Fully diluted net income per share¥1,413.14¥129.47¥123.22

2. “Fully diluted net income per share” for FY2004, the year ended March 31, 2005, is not stated above because
no residual securities existed as convertible bonds were redeemed at maturity as of March 31, 2005.
3. Assumptions in the computation of net income per share and fully diluted net income per share are as follows:
FY 2003 (From April 1, 2003, to
FY 2004 (From April 1, 2004, to
March 31, 2004)
March 31, 2005)
Net income per share:
Net income (Millions of yen)
4,679
3,939
Amount not belonging to commonshareholders (Millions of yen)
(Bonuses to directors through profit
appropriation included therein)
Net income related to commonshares of the Company (Millions ofyen)
Average number of shares during theyear (Thousand shares)
Fully diluted net income per share:
Adjustment to net income (Millionsof yen)(Interest expense included therein(after excluding an amount corresponding to the tax))
Increase in the number of commonshares (Thousand shares)(Convertible bonds included
therein)
Summary of residual securities notincluded in the calculation of fully
diluted net income per share because
they have no dilutive effect.

23

16

(23)

(16)

4,655

3,922

17,97935,745

46

―

(43)

(―)

1,101

―

(1,101)

―

None

13

-------------DAIICHIKOSHO

CO.,

LTD.

(Significant Subsequent Events)
FY 2003 (From April 1, 2003, to March 31, 2004)
1. The meeting of the Board of Directors held on March 22,
2004, adopted a resolution to the effect that the land andbuildings at six sales office buildings be sold to an affiliated company (DK Finance, Co., Ltd.). The sales
procedure completed on April 27, 2004, resulted in a
¥1,234 million loss on sales of fixed assets and caused a¥(3,834) million reversal of land revaluation difference.
2. Pursuant to a resolution adopted by the Board of
Directors on February 23, 2004, the Company shallissue new shares via a stock split in the following
manner:(1) Two-for-one stock split for common shares on May
20, 2004
1) Number of shares increased via the stock split:
18,310,463 common shares2) Splitting method:
The Company’s common shares shall be split at therate of two-for-one for the shares owned by shareholders whose names are registered or recorded in
the last record of shareholders and the last record ofbeneficiary shareholders as of March 31, 2004.
(2) Initial date of reckoning for dividends
April 1, 2004
The per share data for the year ended March 31,
2003, supposing that the stock split was conducted
as of April 1, 2002, and that for the year ended
March 31, 2004, supposing that the stock split was
conducted as of April 2003, are as follows:
FY 2002 (From April 1,
2002, to March 31, 2003)

FY 2003 (From April 1,
2003, to March 31, 2004)
Shareholders’ equity
Shareholders’ equity
per shareper share¥1,265.09¥1,413.14
Net income per share
Net income per share¥119.19¥129.47
Fully diluted net inFully diluted net income per sharecome per share¥112.82¥123.2214

FY 2004 (From April 1, 2004, to March 31, 2005)----------------------------------------------DAIICHIKOSHO

CO.,

LTD.

7. Changes in Management Executives(1) Change of the representative (As of June 26, 2005)
Retiring representative
Tadahiko Hoshi
Currently Chairman(Assumption of the Honorary Chairman
scheduled)(2) Changes in the posts of other officers (As of June 26, 2005)
1) Promotion scheduled
Saburou Hayashi

Tomohiro Midorikawa

Eiji Hata

Managing Director and Senior Executive
Corporate Officer
Executive Director, Sales Management Headquarters(Currently Director and Corporate Officer; andManaging Director and Senior Executive
Corporate Officer; andVice Executive Director, Sales Management
Headquarters andGeneral Manager, Subsidiary Sales Dept. and
Branch Sales Dept.

(Currently Director and Corporate Officer; andManaging Director and Senior Executive
Corporate Officer
Executive Director, Administration Headquarters and General Manager, Finance Dept.

(Currently Director and Corporate Officer; and

2) Candidates for new directors
Kenichi Nemoto
Managing Director and Senior Executive
Corporate Officer; andExecutive Director,
Store Business Headquarters andGeneral Manager,
Store Business Promotion Dept.

Executive Director, Sales Management Headquarters)

Vice Executive Director, Sales Management
Headquarters andGeneral Manager, Subsidiary Sales Dept. and
Branch Sales Dept.)

Executive Director, Administration Headquarters and General Manager, Finance Dept.)(Currently President, Taito Daiichikosho Co.,Ltd.)

Yuji Yamamoto

Managing Director and Senior Executive
Corporate Officer; andExecutive Director,
Music Software Business Headquarters andGeneral Manager,
President’s Office(Currently Corporate Officer; andExecutive Director,
Production Headquarters andGeneral Manager,
President’s Office)Tatsuya Kumagai

Director and Corporate Officer; andExecutive Director,
Development Headquarters(Currently Corporate Officer; andExecutive Director,
Development Headquarters)

Yuichi Murai

Director and Corporate Officer; andExecutive Director,
Gateway Business Headquarters andGeneral Manager,
DAM Station Business Force Dept.

(Currently Corporate Officer; andVice Executive Director,
Gateway Business Headquarters andGeneral Manager,
DAM Station Business Force Dept.)

Yasutaka Wada

Director and Corporate Officer; andExecutive Director,
Production Headquarters andGeneral Manager,
Production Management Dept.

(Currently Corporate Officer; andVice Executive Director,
Production Headquarters andGeneral Manager,
Production Management Dept.)

15

DAIICHIKOSHO

3) Change of a statutory auditor
Juichi Ishikawa
Statutory Auditor

CO.,

LTD.

(Currently Standing Statutory Auditor)

4) Retiring directors
Shinichi Koshimizu
Currently Managing Director and Senior Execu- Supreme Manager fortive Corporate Officer
Production Headquarters
Shinichi Matukawa

Currently Managing Director and Senior Execu- Supreme Manager fortive Corporate Officer
Sales Management Headquarters

Hiroshi Mino

Currently Managing Director and Senior Execu- Supreme Manager fortive Corporate Officer
Development Headquarters andGateway Business Headquarters(3) Changes in the post of corporate officers (As of June 26, 2005)
1) Candidates for corporate officers
Yoshihide Okubo
Corporate Officer

Tadahiro Hoshi

Executive Director,
Core Business Headquarters andGeneral Manager,
Intellectual Property Dept.

Corporate Officer

Vice Executive Director,
Music Software Business Headquarters andGeneral Manager,
Recording Subsidiaries Management Dept.

2) Retiring corporate officers
Takachika Narahara
Currently Corporate Officer

General Manager,
Corporate Sales Dept.

Hirotsune Tahara

Currently Corporate Officer

General Manager,
Satellite Broadcasting Dept.

Toshio Watanabe

Currently Corporate Officer

Executive Director,
Gateway Business Headquarters

16

DAIICHIKOSHO

CO.,

LTD.

Reference: New Management System (As of June 26, 2005)
President

Tatsuyoshi Yoneda

Managing Director andSenior Executive Corporate Officer

Saburou Hayashi

Executive Director,
Sales Management Headquarters

Managing Director andSenior Executive Corporate Officer

Tomohiro Midorikawa

Vice Executive Director,
Sales Management Headquarters andGeneral Manager,
Subsidiary Sales Dept. and Branch Sales
Dept.

Managing Director andSenior Executive Corporate Officer

Eiji Hata

Executive Director,
Administration Headquarters andGeneral Manager,
Finance Dept.

Managing Director andSenior Executive Corporate Officer (Newly
appointed)

Kenichi Nemoto

Executive Director,
Store Business Headquarters andGeneral Manager,
Store Business Promotion Dept.

Managing Director andSenior Executive Corporate Officer (Newly
appointed)

Yuji Yamamoto

Executive Director,
Music Software Business Headquarters andGeneral Manager,
President’s OfficeDirector and Corporate Officer(Newly appointed)

Tatsuya Kumagai

Executive Director,
Development Headquarters

Director and Corporate Officer(Newly appointed)

Yuuichi Murai

Executive Director,
Gateway Business Headquarters andGeneral Manager,
DAM Station Business Force Dept.

Director and Corporate Officer(Newly appointed)

Yasutaka Wada

Executive Director,
Production Headquarters andGeneral Manager,
Production Management Dept.

Standing Statutory Auditor

Hiroshi Kakegawa

Standing Statutory Auditor

Nobuyuki Takase

Statutory Auditor

Juichi Ishikawa

Statutory Auditor

Masumi Arichika

17

DAIICHIKOSHO

CO.,

LTD.

Corporate Officer

Shinji Arima

General Manager,
Auditing Dept.

Corporate Officer

Yasuyuki Suzuki

Vice Executive Director,
Administration Headquarters andGeneral Manager,
Accounting Dept.

Corporate Officer

Shunichi Sadasue

Vice Executive Director,
Production Headquarters andGeneral Manager,
Planning and Production Dept.

Corporate Officer

Osamu Arima

General Manager,
Overseas Subsidiaries Management Dept.

Corporate Officer

Akira Miyake

Vice Executive Director,
Gateway Business Headquarters andGeneral Manager,
e-Commerce Business Force Dept.

Corporate Officer

Kentarou Kurokawa

General Manager,
Satellite Broadcasting Dept.

Corporate Officer(Newly appointed)

Yoshihide Okubo

Executive Director,
Core Business Headquarters andGeneral Manager,
Intellectual Property Dept.

Corporate Officer(Newly appointed)

Tadahiro Hoshi

Vice Executive Director,
Music Software Business Headquarters andGeneral Manager,
Recording Subsidiaries Management Dept.

18