DAIICHIKOSHO

CO.,

LTD.

Translation
This report is a translation of excerpts from original Japanese Flash Report and for reference purpose only. In case of discrepancy between this reportand original Japanese Flash Report, the latter shall prevail.

FY2023, the year ended March 31, 2024

Flash Report on the Consolidated Results for the Year Ended March 31, 2024
[JGAAP]May 13, 2024

Company Name:
DAIICHIKOSHO CO., LTD.
Stock Exchange Listing: Tokyo Stock Exchange
Code Number:
7458
URL:
https://www.dkkaraoke.co.jp/
Representative:
Tadahiro Hoshi, President
Contact:
Yasuhisa Nishihara, General Manager, Accounting Department
Phone:+81-3-3280-2151
Date of the Ordinary General Meeting of Shareholders: June 21, 2024
Start Date for Dividend Payment:
June 24, 2024
Scheduled Date to Submit the Securities Report:
June 25, 2024
Availability of Supplementary Briefing Material on Financial Results: Available
Schedule of Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Year Ended March 31, 2024 (From April 1, 2023, to March 31,
2024)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Millions of yen

Year ended March 31, 2024
Year ended March 31, 2023

146,746
128,156

Operating profit
%
14.5
35.2

Millions of yen

18,601
12,954

Profit attributable toowners of parent

Ordinary profit
%
43.6
―

Basic earnings per share

Millions of yen%
Year ended March 31, 2024
12,56851.0
Year ended March 31, 2023
8,320
60.1
(Note) Comprehensive income:Year ended March 31, 2024: 13,273 million yen [47.2 %]Year ended March 31, 2023: 9,018 million yen [74.4 %]Yen
117.01
76.21

Ordinary profit to total
assetsReturn on equity

Millions of yen

19,561
13,601%
43.8―

Diluted earnings per shareYen
116.76
76.08

Operating profit to net
sales

%
%
%
Year ended March 31, 2024
11.7
9.8
12.7
Year ended March 31, 2023
7.9
7.4
10.1
(Reference) Equity in net income of unconsolidated subsidiaries and affiliates:
Year ended March 31, 2024: ― million yen
Year ended March 31, 2023: ― million yen(Note) Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Basic earnings per share and diluted
earnings per share were calculated as if said split had been carried out at the beginning of the previous fiscal
year.

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CO.,

LTD.

(2) Consolidated financial position
Total assets

Net assets

Millions of yen

Equity ratio

Millions of yen

%
50.9
56.4

Net assets per shareYen
1,006.80
974.95

As of March 31, 2024
211,386
108,991
As of March 31, 2023
188,623
107,915(Reference) Shareholders’ equity:
As of March 31, 2024: 107,581 million yen
As of March 31, 2023: 106,451 million yen(Note) Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Net assets per share were calculated as
if said split had been carried out at the beginning of the previous fiscal year.

(3) Consolidated cash flows

Year ended March 31, 2024
Year ended March 31, 2023

Net cash providedby (used in)operating activities

Net cash providedby (used in)investing activities

Net cash providedby (used in)financing activities

Cash and cash
equivalents at endof period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

26,79924,869(55,915)(12,104)

6,926(9,493)49,30671,423

2. DividendYear ended March 31, 2023
Year ended March 31, 2024
Year ending March 31, 2025
(forecast)First Quarter
Second Quarter
Yen
Yen
―
56.00
―
28.00
―

Annual dividend
Third Quarter
Yen――

Year-end
Yen
57.00
29.00

―

29.00

28.00

Aggregate amount ofdividend (total)

Payout ratio (consolidated)

AnnualYen
113.0057.00
57.00

Ratio of dividends to net
assets (consolidated)
%
5.9
5.8

Millions of yen%
Year ended March 31, 2023
6,168
74.1
Year ended March 31, 2024
6,090
48.7
Year ending March 31, 2025
46.5
(forecast)(Note) Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Actual dividend amounts before stock
split are listed for the year ended March 31, 2023.

3. Forecast of Consolidated Performance for FY2024, the Year Ending March 31, 2025 (From April
1, 2024, to March 31, 2025)
Net sales
Millions of yen

Six months ending
September 30, 2024
Year ending March 31,
2025 (full year)(Percentage figures indicate increase/decrease from a year earlier.)
Operating profit
Ordinary profit
Millions of yen
Millions of yen%%%

74,300

4.3

8,700

(7.2)

9,100

(6.8)

152,700

4.1

18,8001.1

19,6000.2

Profit attributable toowners of parent
Six months ending
September 30, 2024
Year ending March 31,
2025 (full year)

Basic earnings per share

Millions of yen

%

Yen

6,200

(5.7)

58.02

13,1004.2

122.602

DAIICHIKOSHO

CO.,

LTD.

*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting inchanges in scope of consolidation): None
(2) Changes in accounting policies, changes in accounting estimates and retrospective restatement
1) Changes in accounting policies due to the revision of accounting standards: None
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting estimates: None
4) Retrospective restatement: None
(3) Number of common shares issued
1) Number of shares issued
As of109,468,400 As of
109,468,400(including treasury shares)
March 31, 2024
shares March 31, 2023
shares2) Number of treasury shares
As of
2,613,807 As of
282,604
3) Average number of shares
March 31, 2024
shares March 31, 2023
sharesduring the period
Year ended
107,412,564 Year ended
109,185,829
March 31, 2024
shares March 31, 2023
shares(Note) Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Number of shares issued, number oftreasury shares, and average number of shares during the period were calculated as if said split had been
carried out at the beginning of the previous fiscal year.

(Reference) Outline of Nonconsolidated Financial Results
1. Nonconsolidated Performance for the Year Ended March 31, 2024 (From April 1, 2023, to March
31, 2024)(1) Nonconsolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Operating profit
Ordinary profit
Millions of yen
Millions of yen
Millions of yen%%%
106,33119.0
14,16848.9
16,812
56.3
89,36738.5
9,514―
10,756―
Net salesYear ended March 31, 2024
Year ended March 31, 2023

ProfitBasic earnings per share
Diluted earnings per share
%
Yen
Yen
Year ended March 31, 2024
11,50668.0
107.13106.90Year ended March 31, 2023
6,849
118.2
62.73
62.63
(Note) Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Basic earnings per share and diluted
earnings per share were calculated as if said split had been carried out at the beginning of the previous fiscal
year.
Millions of yen(2) Nonconsolidated financial position
Total assets

Net assets

Millions of yen

Millions of yen

Equity ratio
%
32.4
37.4

Net assets per shareYen
521.47511.98

As of March 31, 2024
171,857
56,096
As of March 31, 2023
149,471
56,192(Reference) Shareholders’ equity:
As of March 31, 2024: 55,721 million yen
As of March 31, 2023: 55,900 million yen(Note) Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Net assets per share were calculated as
if said split had been carried out at the beginning of the previous fiscal year.

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CO.,

LTD.

* These consolidated financial results are outside the scope of audit by Certified Public Accountants or auditing
corporations.
* Explanation for the appropriate use of performance forecasts and other special notes:
The statements regarding forecast of financial results in this report are based on the information that is available, as
well as estimates, assumptions and projections that are believed to be reasonable at the time of publication.
Therefore, there might be cases in which actual results greatly differ from forecast values. For the conditions
underlying the assumptions made for financial results forecasts and their use, please see “1. Overview of Operating
Results, etc. (4) Future Outlook” on page 9 of the Attachments.

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CO.,

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Table of Contents - Attachments
1. Overview of Operating Results, etc. ................................................................................................................ 6(1) Overview of Operating Results for the Fiscal Year under Review .............................................................. 6(2) Overview of Financial Position for the Fiscal Year under Review .............................................................. 8(3) Overview of Cash Flows for the Fiscal Year under Review ........................................................................ 8(4) Future Outlook ............................................................................................................................................. 9
2. Basic Policy on Selection of Accounting Standards ........................................................................................ 9
3. Consolidated Financial Statements and Primary Notes ................................................................................. 10(1) Consolidated Balance Sheets ..................................................................................................................... 10(2) Consolidated Statements of Income and Comprehensive Income ............................................................. 12(Consolidated Statements of Income) .................................................................................................... 12(Consolidated Statements of Comprehensive Income) .......................................................................... 13(3) Consolidated Statements of Changes in Equity ......................................................................................... 14(4) Consolidated Statements of Cash Flows .................................................................................................... 16(5) Notes to Consolidated Financial Statements ............................................................................................. 18(Notes on Going Concern Assumption) ................................................................................................. 18(Consolidated Statements of Income) .................................................................................................... 18(Segment Information) ........................................................................................................................... 18(Per Share Information) .......................................................................................................................... 20(Significant Subsequent Events) ............................................................................................................ 20

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CO.,

LTD.

1. Overview of Operating Results, etc.
(1) Overview of Operating Results for the Fiscal Year under Review
In the fiscal year ended March 31, 2024 (the “fiscal year under review”), Japan’s economy showed signs of a moderate
recover due to the downgrading of the status of COVID-19 under the Act on the Prevention of Infectious Diseases andMedical Care for Patients with Infectious Diseases, increase in inbound demand, and a recovery trend in consumer
spending. The economic outlook, however, remains unclear mainly due to concerns that a downward swing in the global
economy could put pressure on Japan’s economy, as well as progressive depreciation of the yen and continued price hikesof commodities.
In the karaoke industry, where DAIICHIKOSHO CO., LTD. (the “Company,” together with its subsidiaries, the“Group”) operates, markets were on a recovery trend as a whole, mainly in the night business and the karaoke cabinmarkets, the Company’s mainstay markets.
As a result of taking a series of measures in our businesses amid such a situation, in the fiscal year under review, net
sales amounted to a record high 146,746 million yen (up 14.5% year on year). In terms of profits, operating profit was
18,601 million yen (up 43.6% year on year), ordinary profit was 19,561 million yen (up 43.8% year on year), and profit
attributable to owners of parent amounted to 12,568 million yen (up 51.0% year on year).

Net sales
Operating profit
Ordinary profit
Profit attributable to owners of parent

FY2022
128,156
12,954
13,6018,320

FY2023
146,746
18,601
19,561
12,568Year-on-year change
18,589
5,646
5,960
4,247

(Millions of yen)
% change
14.5%
43.6%
43.8%
51.0%

Operating results by segment are as follows.
(Commercial karaoke business)
In the commercial karaoke business, the Company sought to strengthen its stable profit base on the back of an
improvement in the business environment by increasing the number of equipment rentals and expediting the replacement ofprevious models with newer ones, which had slowed due to the impact of COVID-19. At the same time, we strived to
improve our Karaoke DAM products by further expanding our visual content, including live videos, animated videos, andmusic videos.
In such an environment, we launched LIVE DAM AiR, a successor of our flagship model, in April. With the expansionof the Ai Assistant function that allows users to queue a song and remotely operate the unit vocally through a microphone,
it is now compatible with speech in English, Chinese, and Korean. In addition, the Live Sound function, which reproduces
acoustic characteristics of actual concert venues, is now complemented by “Excite Live Hall,” which creates a huge chorusof several thousand persons singing together or engaging in call and response. These and other new functions that further
pursue the joy of singing received a favorable reception from users, and we have shipped more units than originallyplanned.
Furthermore, in the seniors’ market, the business environment improved as we could resume some of our door-to-doorsales activities targeting nursing facilities and others, which were not possible during the pandemic. We also focused on
utilizing the Internet by, for example, organizing online events periodically, in an effort to increase the number of units inoperation.
As a result, net sales increased by 5.8% year on year, owing to strong shipments of new products and steady increases in
the number of equipment rentals and the number of DAM units in operation. Operating profit decreased by 8.9% year on
year mainly due to the impact from having invested in the equipment for rental and contents that will form a base of stockincome in the future.
FY2022
Net sales
Operating profit

FY202357,731
13,59361,07812,384Year-on-year change
3,347(1,208)(Millions of yen)
% change
5.8%(8.9%)(Karaoke cabin and restaurant business)
In the karaoke cabin and restaurant business, we opened 10 karaoke cabins and 11 restaurants and closed 12 karaokecabins and 23 restaurants due to the integration of food and beverage complex types, and we operated 506 karaoke cabins

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CO.,

LTD.

and 159 restaurants as of the end of the fiscal year under review.
Thanks to the downgrading of the status of COVID-19 under the Act on the Prevention of Infectious Diseases andMedical Care for Patients with Infectious Diseases in May, we have seen a recovery trend in the flow of customers since thebeginning of the fiscal year under review. December, the peak demand period, saw a recovery in the use of karaoke cabins
for after-parties, and reservations and orders were strong for restaurants. As such, during the fiscal year under review,
existing karaoke cabin sales recovered to a level 8% lower than before the COVID-19 pandemic and restaurants to a level
12% higher, for a 22% increase for karaoke cabins and 29% increase for restaurants, year on year.
Under such circumstances, for BIG ECHO karaoke cabins, which marked its 35th anniversary in September, we tried tobring back customers visiting karaoke cabins less frequently than before, through collaboration with popular artists andanimation works, as well as various campaigns making the 35th anniversary more exciting, such as the Good Company
Room, which is a karaoke room decorated with major brands of our business partners, and BIG ECHO Karaoke Grand Prix,
which was held for the first time, while at the same time introducing the top-end model, LIVE DAM AiR, early andequipping BIG ECHO app with the Denmoku function, in an effort to enhance customer satisfaction.
For restaurants, we made efforts to increase customer traffic in a wide-ranging manner by expanding the call center
function to win more reservations for banquets and developing new brands, including the opening of three premises in thedarts business, the sushi restaurant “Totouo” in Akihabara, Tokyo and Shijo Kawaramachi, Kyoto and the American diner“FOREST DINER” in Sapporo, Hokkaido.
As a result, net sales increased by 25.5% year on year, and an operating profit amounted to 7,100 million yen.
FY2022
Net sales
Operating profit

FY202351,584(59)

64,733
7,100

Year-on-year change
13,149
7,159(Millions of yen)
% change
25.5%―(Music software business)
In the music software business, product sales of CDs and DVDs and the TV program production business progressed
mostly as planned, while the music industry has been booming again as events and concerts have resumed.
As a result, net sales and operating profit increased by 4.7% and 63.6%, respectively, year on year.
FY2022
Net sales
Operating profit

FY2023
6,430
228

6,733
373

Year-on-year change
303
145(Millions of yen)
% change
4.7%
63.6%

(Other businesses)
In the other businesses, the parking business operating “The Park” brand as its new pillar of revenue made steadyprogress, and the business scale expanded to over 2,500 parking facilities and 30,000 parking spots as of the end of the
fiscal year under review. In addition, we strove to expand recognition of “The Park” brand through TV commercials
targeting land owners.
As a result, net sales increased by 14.4% year on year owing to factors such as an increase in revenue from the parking
business, and operating profit decreased by 7.0% year on year due to the impact of increases in selling, general andadministrative expenses, including advertising expenses related to the parking business.
Please note that while the Company acquired all the shares of Crest Co., Ltd., which operates “Break Parking” with 700
parking facilities and 6,000 parking spots in Tokyo, Osaka, Okinawa, and other cities in February, it will be from the next
fiscal year (the fiscal year ending March 31, 2025) when it contributes to net sales and profit of the business.
FY2022
Net sales
Operating profit

FY2023
12,411
1,581

14,2001,469

7Year-on-year change
1,789
(111)

(Millions of yen)
% change
14.4%(7.0)%DAIICHIKOSHO

CO.,

LTD.

(2) Overview of Financial Position for the Fiscal Year under Review
Total assets at the end of the fiscal year under review increased by 22,762 million yen from the end of the previous fiscal
year to 211,386 million yen.
Major change from the previous fiscal year was a decrease in cash and deposits by 22,117 million yen in current assets.
In non-current assets, karaoke equipment for rental, construction in progress and goodwill increased by 2,816 million
yen, 31,910 million yen and 5,061 million yen, respectively.
Liabilities increased by 21,686 million yen from the end of the previous fiscal year to 102,394 million yen.
This was mainly due to an increase of 20,398 million yen in long-term borrowings in non-current liabilities.
Net assets increased by 1,075 million yen from the end of the previous fiscal year to 108,991 million yen.
The decrease is primarily attributable to an increase in retained earnings of 12,568 million yen due to profit attributableto owners of parent, a decrease in retained earnings of 6,103 million yen due to the dividends of surplus, and a decrease of
6,000 million yen due to purchase of treasury shares.

(3) Overview of Cash Flows for the Fiscal Year under Review
Cash and deposits (hereinafter referred to as “funds”) at the end of the fiscal year under review decreased by 22,117
million yen from the previous fiscal year to 49,306 million yen.
The following is an overview of cash flows in the fiscal year under review.
(Cash Flows from Operating Activities)
Funds provided by operating activities increased by 1,930 million yen year on year to 26,799 million yen, mainly
due to profit before income taxes of 18,694 million yen, depreciation of 12,937 million yen and income taxes paid of
4,722 million yen.
(Cash Flows from Investing Activities)
Funds used in investing activities increased by 43,810 million yen year on year to 55,915 million yen, mainly due topurchase of property, plant and equipment of 45,727 million yen, purchase of intangible assets of 3,172 million yen,
payments for acquisition of video licenses of 1,735 million yen and purchase of shares of subsidiaries resulting inchange in scope of consolidation of 4,821 million yen.
(Cash Flows from Financing Activities)
Funds provided by financing activities were 6,926 million yen (funds used in the previous fiscal year amounted to
9,493 million yen), mainly due to proceeds from long-term borrowings of 30,655 million yen, repayments of long-termborrowings of 10,842 million yen, dividends paid of 6,103 million yen and purchase of treasury shares of 6,000 million
yen.
(Reference) Cash flow indicators
As of March 31
2020

2021

2022

2023

2024

Equity ratio (%)

74.0

55.8

57.4

56.4

50.9

Equity ratio at market value (%)

89.4

125.2

105.3

126.4

98.0

0.5

6.5

2.6

1.8

2.4

243.8

39.2

90.9

143.4

192.9

Ratio of interest-bearing debt to cash
flow (years)
Interest coverage ratio (times)
Notes:

Equity ratio is shareholders’ equity divided by total assets.
Equity ratio at market value is market capitalization divided by total assets.
Ratio of interest-bearing debt to cash flow is interest-bearing debt divided by cash flow.
Interest coverage ratio is cash flow divided by interest expenses.
1.

All figures are calculated on a consolidated basis.

2.

Market capitalization is calculated by multiplying closing share price at fiscal year-end by the number of shares issued
less treasury shares at fiscal year-end.

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3.

Cash flows from operating activities on the consolidated statements of cash flows are used as “cash flow.”

4.

Interest-bearing debt represents the sum of all liabilities on the consolidated balance sheets subject to interest payment.
Interest paid on the consolidated statements of cash flows is used as “interest expenses.”(4) Future Outlook
The economic outlook is expected to remain uncertain due to factors such as concerns for price hikes of commodities
impacted by fluctuations in exchange rates and overseas affairs, while consumer spending is expected to continue torecover moderately on the back of an improvement in the employment and income environments.
In the domestic karaoke market, a moderate improvement trend is expected to continue overall as the use of karaoke
will continue to expand in the senior’s market including nursing facilities, as well as its moderate increase is observed in the
karaoke cabin market and hotel/inn market, although the rebound from the COVID-19 pandemic terminated its cycle in thenight business.
Recognizing these circumstances, the Group will strive to strengthen its competitiveness and profitability through theenhancement of the brand value of “DAM” and “BIG ECHO” by proactively investing management resources in thecommercial karaoke business that has a high market share and the karaoke cabin and restaurant business as its mid-to-longterm management strategy. In addition, it will aim at sustainable growth by also focusing on the development of parking
business that has been growing.
In the commercial karaoke business, we will work to increase the number of DAM systems in operation through a sales
structure that utilizes local-based face-to-face sales as well as websites to broaden the breadth of karaoke users byimplementing actions tailored to each market. In addition, continuing from the fiscal year under review, we will pursue
investment into replacement of rental equipment assets, and investment into karaoke contents such as sound tracks andvideo, aiming to strengthen our stable profit base and further increase the value of DAM brand. In the seniors’ market, we
will contribute to the solution of social issues as well such as extending healthy lifespans and reducing workloads for carefacility staff through sales and marketing of FREE DAM LIFE, which is the equipment dedicated for the senior’s market,
and promotion of appealing new functions such as the “scheduling function.”In the karaoke cabin and restaurant business, we will work to improve customer satisfaction through the provision ofhigher quality services by advancing the systematization to applicable parts including the introduction of automatedreception and payment, as well as posting a slogan of “BIG SMILE, BIG ECHO.” and further enhancing equipment at BIG
ECHO nationwide, as a chain directly operated by a karaoke system manufacturer, such as the equipment for karaoke,sound, and aesthetics. Additionally, continuing from the fiscal year under review, we will strive to appeal to customers withthe joy of karaoke, through a variety of campaigns such as collaboration with artists and animation works.
In the music software business, we will work to discover new artists and create hit songs while also focusing on themusic publishing business to construct a steady earnings model.
Additionally, in the parking business, which we are currently focusing on as a growing business, we will pursue
development of new facilities, including M&As, and aim to grow the size of the business further, while also working to
spread awareness of “The Park” brand through methods such as TV commercials.
Based on the above, we expect net sales of 152,700 million yen, operating profit of 18,800 million yen, ordinary profitof 19,600 million yen and profit attributable to owners of parent of 13,100 million yen in the next fiscal year.
The earnings forecast has been made based on information available as of the publication date of this material, andactual operating results may differ from such forecasts due to various factors.

2. Basic Policy on Selection of Accounting Standards
The Group’s policy for the time being is to apply Japanese GAAP. The Group will consider whether to apply
International Financial Reporting Standards (IFRS) taking into account trends of other companies in Japan.

9DAIICHIKOSHO

CO.,

LTD.

Consolidated Financial Statements and Primary Notes(1) Consolidated Balance Sheets(Millions of yen)

AssetsCurrent assets
Cash and deposits
Notes receivable - trade
Accounts receivable - trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Karaoke equipment for rental
Accumulated depreciation
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities
Accumulated depreciation
Karaoke cabin and restaurant facilities, net
LandConstruction in progress
Other
Accumulated depreciation
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Deferred tax assets
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

10

FY2022(As of March 31, 2023)

FY2023(As of March 31, 2024)

71,812
44
5,323
11,735
4,888(374)
93,42949,694
72
5,822
11,2167,005(331)
73,47913,894(8,954)
4,939
51,490(45,183)
6,306
46,078(36,885)
9,192
40,218209
7,226(5,801)
1,424
62,292

14,348(9,367)
4,980
55,880(46,757)
9,122
48,153(37,277)
10,875
40,111
32,1208,439(6,418)2,021
99,233

606
6,056
6,663

5,668
5,616
11,285

4,914
516
5,117
14,4771,352(140)
26,237
95,193
188,623

6,060
391
5,065
14,341
1,655(126)
27,388137,906
211,386DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Accounts payable - other
Income taxes payable
Contract liabilities
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Deferred tax liabilities
Provision for retirement benefits for directors (and otherofficers)
Retirement benefit liability
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders' equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders' equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets

11

FY2022(As of March 31, 2023)

FY2023(As of March 31, 2024)

4,954
13,511
8,974
3,106
1,038
1,151
2,551
35,288

4,332
12,885
9,703
4,746
912
1,214
3,118
36,914

31,13544

51,533
35

1,113

666

7,991
2,018
3,115
45,41980,707

7,986
1,879
3,379
65,480102,394

12,3504,211
89,885(571)
105,876

12,3504,211
96,350(6,571)
106,340

1,047
(733)
99
160
574
292
1,172
107,915
188,623

1,466
(733)
188
320
1,240
374
1,035
108,991
211,386DAIICHIKOSHO

CO.,

LTD.

(2) Consolidated Statements of Income and Comprehensive Income(Consolidated Statements of Income)(Millions of yen)

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising expenses
Promotion expenses
Packing and freight expenses
Remuneration for directors (and other officers)
Provision for retirement benefits for directors (and otherofficers)
Salaries and bonuses
Provision for bonuses
Retirement benefit expenses
Rent expenses
Depreciation
Other
Total selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Dividend income
Commission income
Insurance claim income
Cooperative monetary aid received
Compensation income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Commission expenses
Cancellation penalty
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on sale of shares of subsidiaries and associates
Gain on bargain purchase
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
Loss on valuation of investment securities
Total extraordinary losses
Profit before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
ProfitProfit attributable to non-controlling interests
Profit attributable to owners of parent

12

FY2022(From April 1, 2022, toMarch 31, 2023)

FY2023(From April 1, 2023, to
March 31, 2024)

128,156
83,71544,441

146,746
94,14352,602

1,265
1,365
718
1,114

1,640
1,701
731
1,104

157

110

13,346
899
573
1,035
739
10,27031,486
12,954

13,840
945
563
1,044
656
11,66334,00018,601

23
131
136
259
187
－
418
1,156

25
143
164
154
188
310
408
1,394

173
86
14
39
196
510
13,601

171
10
38
52
160
434
19,561

81
0
－
112
2,928
3,121

102
－
293
－
－
396

104
3,130
150
3,385
13,337
3,800
1,177
4,978
8,359
38
8,320

172
1,091
－
1,264
18,694
6,321
(234)
6,086
12,60739
12,568DAIICHIKOSHO

CO.,

LTD.

(Consolidated Statements of Comprehensive Income)(Millions of yen)

ProfitOther comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests

13

FY2022(From April 1, 2022, toMarch 31, 2023)

FY2023(From April 1, 2023, to
March 31, 2024)

8,359

12,607

441
30
186
658
9,018

418
88
159
666
13,273

8,979

13,23438

39

DAIICHIKOSHO

CO.,

LTD.

(3) Consolidated Statements of Changes in Equity
FY2022 (from April 1, 2022, to March 31, 2023)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

12,350

Balance at beginning of period

Retainedearnings

4,114

Treasury shares

87,733

(570)

Total
shareholders'equity103,628

Changes during period(6,168)Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period(6,168)

8,320

8,320
(0)

(0)

96

96
4,211

－
12,350

Balance at end of period

96

2,151
89,885

(0)
(571)

2,248
105,876

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

606

(733)

69

Remeasurementsof defined benefit
plans

(26)

Total
accumulated
othercomprehensive
income(84)

ShareacquisitionrightsNon-controllinginterests

Total net
assets219

1,397

105,160

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(6,168)
8,320
(0)
96
441

－

30

186

658

73

(225)

506

441

－

30

186

658

73

(225)

2,755

1,047

(733)

99

160

574

292

1,172

107,915

14

DAIICHIKOSHO

CO.,

LTD.

FY2023 (from April 1, 2023, to March 31, 2024)(Millions of yen)
Shareholders’ equity
Share capital

Capital surplus

12,350

Balance at beginning of period

Retainedearnings

4,211

Treasury shares

89,885

(571)

Total
shareholders'equity105,876

Changes during period(6,103)

Dividends of surplus
Profit attributable to owners ofparentPurchase of treasury shares
Change in ownership interest ofparent due to transactions with
non-controlling interests
Net changes in items other thanshareholders' equity
Total changes during period(6,103)

12,56812,568(6,000)(6,000)－－12,350

Balance at end of period

6,464
96,350－4,211(6,000)(6,571)

464
106,340

Accumulated other comprehensive income

Balance at beginning of
periodValuationdifference on
available-for-salesecurities

Revaluation
reserve forland

Foreigncurrencytranslation
adjustment

Remeasurementsof defined benefit
plans

Total
accumulated
othercomprehensive
incomeShare
acquisitionrightsNon-controllinginterests

Total net
assets

1,047

(733)

99

160

574

292

1,172

107,915

Changes during period
Dividends of surplus
Profit attributable toowners of parent
Purchase of treasury
sharesChange in ownershipinterest of parent due totransactions with
non-controlling interests
Net changes in items
other than shareholders'equityTotal changes during
periodBalance at end of period(6,103)
12,568(6,000)
－

418

－

88

159

666

82

(137)

611

418

－

88

159

666

82

(137)

1,075

1,466

(733)

188

320

1,240

374

1,035

108,99115

DAIICHIKOSHO

CO.,

LTD.

(4) Consolidated Statements of Cash Flows(Millions of yen)

Cash flows from operating activities
Profit before income taxes
Depreciation
Amortization of goodwill
Impairment losses
Increase (decrease) in provision for retirement benefits for
directors (and other officers)
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of investment securities
Loss (gain) on sale of shares of subsidiaries and associates
Loss (gain) on valuation of investment securities
Loss (gain) on disposal of non-current assets
Subsidy income
Gain on bargain purchase
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Transfer of cost of sales on karaoke equipment for rental
Decrease (increase) in advance payments to suppliers
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other
Other, net
SubtotalInterest and dividends received
Interest paid
Subsidies received
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Payments for acquisition of video licenses
Proceeds from sale of investment securities
Purchase of investment securities
Purchase of shares of subsidiaries resulting in change in scopeof consolidation
Proceeds from purchase of shares of subsidiaries resulting inchange in scope of consolidation
Proceeds from sale of shares of subsidiaries resulting in change
in scope of consolidation
Payments for acquisition of businesses
Loan advances
Proceeds from collection of loans receivable
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Other, net
Net cash provided by (used in) investing activities

16

FY2022(From April 1, 2022, toMarch 31, 2023)

FY2023(From April 1, 2023, to
March 31, 2024)

13,337
10,867108
3,130

18,694
12,937
74
1,091

119

(389)

(155)
173
(26)
(0)
－
150
22
(2,928)(112)(1,233)(4,137)
49
(351)
2,330
2,318
918
24,581
155
(173)
3,096
(2,790)24,869

(168)
171
(71)
－
(293)
－
70
－
－
(714)
404
71
(510)
(663)
701
85
31,491169(138)－(4,722)
26,799(334)
34(7,462)333(3,199)(1,246)
0
－

(34)
34
(45,727)
173(3,172)(1,735)－(547)－(4,821)

143

－

－

98

(16)
(149)
212
(671)
356
(102)
(12,104)

－
(75)
217
(290)
230
(263)
(55,915)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2022(From April 1, 2022, toMarch 31, 2023)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Purchase of treasury shares
Purchase of shares of subsidiaries not resulting in change inscope of consolidation
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

17

FY2023(From April 1, 2023, to
March 31, 2024)(2,235)130(1,052)(6,168)(0)(653)
30,655(10,842)(6,103)(6,000)

(159)

－

(7)
(9,493)26
3,298
68,12571,423

(127)
6,926
71
(22,117)
71,42349,306DAIICHIKOSHO

CO.,

LTD.

(5) Notes to Consolidated Financial Statements(Notes on Going Concern Assumption)
Not applicable.

(Consolidated Statements of Income)Subsidy income
Following the issuance of the declaration of state of emergency due to the spread of COVID-19, employment
adjustment subsidies, which are subsidies that are provided to cover salaries, etc. for the period during which employees are
furloughed, as well as subsidies, etc. that are received from the national government, local municipalities, etc., have beenposted in subsidy income.

(Segment Information)
1. Overview of reportable segments
Reportable segments of the Group consist of units for which separate financial information is available and are regularly
reviewed by the Company’s Board of Directors to determine allocation of management resources and evaluate
performance.
The Group operates business headquarters by product and service at its head office, each of which formulates acomprehensive strategy for its products and services and performs business activities.
Accordingly, the Group consists of segments by product and service based on business headquarters, and has threereportable segments, namely, the Commercial Karaoke business, the Karaoke Cabin and Restaurant business and the Music
Software business.
The Commercial Karaoke business sells and leases commercial karaoke equipment, and provides on-demand karaoke
video and audio contents. The Karaoke Cabin and Restaurant business operates karaoke cabins and restaurants. The Music
Software business produces and sells music and visual software.
2. Information on the calculation method for the amounts of sales, profit or loss, assets, liabilities and other items byreportable segment
Segment profit is based on operating profit.
Assets are not allocated to business segments.

18

DAIICHIKOSHO

CO.,

LTD.

3. Information on the amounts of sales, profit or loss, assets, liabilities and other items by reportable segment

FY2022 (From April 1, 2022, to March 31, 2023)(Millions of yen)
Commercial
karaoke

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Subtotal

Other(Note 1)

Total

Adjusted
amount(Note 2)

Postedamount to theconsolidated
statements ofincomeSales
Sales to third parties
Intersegment sales
and transfers
Total
Segment profit orSegment loss (Operating
profit or Operating loss)
Other items
Depreciation andamortization
Amortization of
goodwill

Notes:

57,731

51,584

6,430

115,745

12,411

128,156－

128,156

－

－

－

－

－

－

－

－

57,731

51,584

6,430

115,745

12,411

128,156－

128,156

13,593(59)

228

13,762

1,581

15,343(2,388)

12,954

6,647

1,999

22

8,669

695

9,365

150

9,515

22

－

－

22

85

108

－

108

1. The category “Other” comprises a business segment not attributed to reportable segments, including
parking, real estate leasing and BGM broadcasting businesses.
2. The (2,388) million yen adjustment posted to segment profit or segment loss is primarily composed ofgeneral and administrative expenses incurred by the administrative department at the head office that are
not attributable to any particular reportable segment.

FY2023 (From April 1, 2023, to March 31, 2024)(Millions of yen)
Commercial
karaoke

Reportable segments
KaraokeMusiccabin andsoftwarerestaurant

Subtotal

Other(Note 1)

Total

Adjusted
amount(Note 2)

Postedamount to theconsolidated
statements ofincomeSales
Sales to third parties
Intersegment sales
and transfers
Total
Segment profit(Operating profit)
Other items
Depreciation andamortization
Amortization of
goodwill

Notes:

61,07864,733

6,733

132,545

14,200146,746－

146,746

－

－

－

－

－

－

－

－

61,07864,733

6,733

132,545

14,200146,746－

146,746

12,384

7,100

373

19,8581,469

21,328(2,726)

18,601

8,152

2,184

25

10,363951

11,315135

11,451

－

－

－

－

74

74

－

74

1. The category “Other” comprises a business segment not attributed to reportable segments, including
parking, real estate leasing and BGM broadcasting businesses.
2. The (2,726) million yen adjustment posted to segment profit is primarily composed of general andadministrative expenses incurred by the administrative department at the head office that are not
attributable to any particular reportable segment.

19

DAIICHIKOSHO

CO.,

LTD.

(Per Share Information)
FY2022
FY2023(From April 1, 2022, to March 31, 2023) (From April 1, 2023, to March 31, 2024)
Net assets per share

974.95 yen

1,006.80 yen

Basic earnings per share

76.21 yen

117.01 yen

Diluted earnings per share

76.08 yen

116.76 yen

Notes:

1. Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Net assets per share, basic earnings
per share and diluted earnings per share were calculated as if said split had been carried out at the
beginning of the previous fiscal year.
2. The basis of calculation of basic earnings per share and diluted earnings per share are as follows:
FY2022
FY2023(From April 1, 2022, to March 31, 2023) (From April 1, 2023, to March 31, 2024)

Basic earnings per share
Profit attributable to owners of parent(Millions of yen)

8,320

12,568－－

Profit attributable to owners of parent relating
to common shares(Millions of yen)

8,320

12,568Average number of common shares during theperiod (Thousand shares)

109,185

107,412Adjustment to profit attributable to owners ofparent (Millions of yen)－－

Increase in number of common shares(Thousand shares)

179

226

[Of which, share acquisition rights](Thousand shares)

[179]

[226]

－

－

Amount not attributable toshareholders (Millions of yen)commonDiluted earnings per share

Overview of potential shares not included in thecalculation of diluted earnings per share due tolack of dilutive effect(Significant Subsequent Events)
Not applicable.

20