FY2023

May 13, 2024

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on
Financial Results for the Year Ended March 31, 2024

Overview of Financial Results for the Year Ended March 31, 2024:
Contents

1. Overview of Financial Results for the Year
Ended March 31, 2024
p.2-13- Summary- Statements of income
Performance comparison with FY2022 andforecast
Factors for change of net sales/operating profit(comparison with FY2022)
Factors for change of net sales/operating profit(comparison with forecast)
Extraordinary income and losses- Quarterly sales performance- Performance by segment
Commercial karaoke, karaoke cabins andrestaurants, music software, and other- Financial position (consolidated balance sheets)- Consolidated management indicators
Profitability, soundness, cash flows

１

FY2023

2. Outlook of Financial Results for the YearEnding March 31, 2025
p.14-19- Full-year consolidated performance forecasts- Factors for change of net sales/operating profit- Corporate topics- Initiatives by segment- Shareholder returns (Dividend
forecasts/repurchasing of shares)

3. References

p.20-26- The Group corporate message (Singing)- Actions for implementing management
conscious of the cost of capital and stock price- Primary product lineup (Commercial karaoke)- Karaoke and restaurant brand list
- Parking business- Musicians of music software companies/otherbusinesses

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

1

FY2023

Overview of Financial Results
for the Year Ended March 31, 2024

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

Overview of Financial Results for the Year Ended March 31, 2024:
Summary

FY2023

 Following on the previous period, the economy continued its return to normal from the impact of COVID-19 and thebusiness environment improved.
 (Commercial karaoke)
This segment trended toward recovery, mainly in the night business market. The number of DAM systems inoperation at the end of the period under review increased by 2% from the end of the previous period.
(Karaoke cabins and restaurants)
The flow of customers continued on the recovery trajectory from the previous period. Net sales at existing storesrose by 24% year on year (down 4% from the pre-COVID-19 level).
 Consolidated net sales reached an all-time high (up 14.5% year on year), driving a tremendous improvement in
profits.
(Year-on-year comparison) Operating profit: +5.6 billion yen; ordinary profit: +5.9 billion yen; profit: +4.2 billion yen February 2024 :February 2024 :February 2024 :March 2024:

Acquired shares in Crest Co., Ltd., which operates “Break Parking.”
Acquired non-current asset in Mita 3-chome, Minato-ku, Tokyo as property used for head office
functions.
Undertook a loan of 30.0 billion yen to fund the abovementioned non-current asset acquisition.
Removed UNION TV & MOTION PICTURE CO., LTD. from our group of consolidated
subsidiaries through a transfer of our shares in it.

 Forecast for the next period (year ending March 31, 2025):
Higher earnings are anticipated from drivers such as growth of the number of equipment rentals in the commercial
karaoke business, increased net sales at existing stores of the karaoke cabins and restaurants business, andexpansion of the parking business (including full-year contribution of sales by Crest Co., Ltd.). However, profits will
likely be on par with the current period due to the impact of higher expenses driven upward by base-pay increases,
goodwill amortization, and other factors.
Net sales: 152.7 billion yen; operating profit: 18.8 billion yen; ordinary profit 19.6 billion yen; profit: 13.1 billion yen

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

2

Overview of Financial Results for the Year Ended March 31, 2024:
Performance comparison with FY2022 and forecast

FY2023(Millions of yen)

FY2023
forecast

Change%from forecast change(vs. sales
ratio)Net sales

128,156-

144,500-

146,746-+18,589 +14.5%+2,246+1.6%

Operating
Profit12,954(10.1%)

18,000(12.5%)

18,601(12.7%)+5,646 +43.8%

+601

+3.3%

Ordinary
Profit13,601(10.6%)

19,100(13.2%)

19,561(13.3%)+5,960 +43.9%

+461

+2.4%

Profit8,320(6.5%)

12,700(8.8%)

12,568(8.6%)+4,247 +51.0%(132)(1.0)%

144,500

FY2023Operating Profit

Net sales
160,000(vs. sales
ratio)%(vs. sales Change fromratio)FY2022changeFY2022

146,746

20,00018,00018,601

128,156

Ordinary Profit
25,00015,00019,10020,000120,000

15,00019,561

12,95410,00015,00080,000

Profit13,601

12,70012,568FY2023
forecast

FY20238,320

10,00010,0005,000

40,0005,000

0FY2022

１

FY2023
forecast

FY202305,000

FY2022

FY2023
forecast

FY20230

FY2022

FY2023
forecast

FY20230

FY2022DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

3

Overview of Financial Results for the Year Ended March 31, 2024:
Factors for change of net sales/operating profit (comparison with FY2022)
Net sales

FY2023

Changefrom FY2022% change

Total

12,95418,601+5,646+43.6%+5.8%

Commercial
karaoke

13,593

12,384(1,208)(8.9)%+13,149+25.5%

Karaoke cabins
and restaurants

(59)

7,100

+7,159

-

6,733

+303

+4.7%

Music software

228

373

+145

+63.6%

14,200+1,789+14.4%

Other

1,581

1,469

(111)

(7.0)%

Corporate
expenses(2,388)(2,726)(337)-

FY2022
Results

12.9

FY2023

Changefrom FY2022% change

Total

128,156

146,746+18,589+14.5%

Commercial
karaoke

57,731

61,078+3,347

Karaoke cabins
and restaurants

51,58464,733

Music software

6,430

Other

12,411

Unit: Billions of yen

Commercial
karaokeKaraokecabins andrestaurants

128.1
Increase in shipments
Increase in number of units
in operation

Commercial
karaoke

+3.3
+13.1

Recovery in net sales
at existing stores

+0.3

Music
softwareOther
FY2023Results

１(Millions of yen)

FY2022

FY2022

FY2022
Results

Operating
ProfitFY2023

Increase in parking facilities

146.7

+1.7

Karaokecabins andrestaurants(1.2)

Increase in rental equipment replacement costs
Increase in content-related expenses
Increase in SG&A expenses

Increase in net sales
at existing stores

+7.1
+0.1

Music
software
Other(Including corporate
expenses)

FY2023Results

Increase in replacement costs of parking lot equipment
Increase in advertising expenses
Recording of taxes on acquisition of non-current assets

(0.4)

18.6

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

4

Overview of Financial Results for the Year Ended March 31, 2024:
Factors for change of net sales/operating profit (comparison with forecast)
Net sales

FY2023
results

Changefrom forecast% change

Total

18,00018,601

+601

+3.3%

+1.0%

Commercial
karaoke

12,56012,384(176)(1.4)%+1,633+2.6%

Karaoke cabins
and restaurants

6,200

7,100

+900

+14.5%

6,733

(337)

(4.8)%Music software

290

373

+83

+28.6%

14,201

+341

+2.5%

Other

1,450

1,469

+19

+1.3%

Corporate
expenses(2,500)(2,726)(226)-

FY2023
results

Changefrom forecast% change

Total

144,500

146,746+2,246+1.6%

Commercial
karaoke

60,47061,078+608

Karaoke cabins
and restaurants

63,10064,733

Music software

7,070

Other

13,860

Unit: Billions of yen

Commercial
karaokeKaraokecabins andrestaurants

FY2023
Forecast

144.5
Upward swing in
product sales

+1.6
(0.3)

146.7

18.0

Commercial
karaoke(0.1)

Replacement of rental equipment
Upward swing in expenses

Karaokecabins andrestaurants

Increase in net sales
at existing stores

+0.9
+0.0

Music
software

+0.3

Other

１

+0.6

Upward swing in net sales
at existing storesMusic
software

FY2023Results(Millions of yen)

FY2023
forecast

FY2023
forecast

FY2023
Forecast

Operating
ProfitFY2023

Other(Including corporate
expenses)

FY2023Results

Recording of taxes on acquisitionof non-current assets

(0.2)

18.6

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

5

Overview of Financial Results for the Year Ended March 31, 2024:
Extraordinary income and losses

FY2023[Extraordinary income and losses]◆ Extraordinary income 396 million yen (3,121 million yen for FY2022)
Main reason- Gain on sale of shares of subsidiaries and associates 293 million yen (None in FY2022)*Main reasons for FY2022 were subsidy income of 2,928 million yen, etc.

◆ Extraordinary losses 1,264 million yen (3,385 million yen for FY2022)
Main reason- Impairment losses

1,091 million yen (3,130 million yen for FY2022)(Impairment losses of karaoke cabin and restaurant facilities, parking lot facilities, etc.)

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

6

Overview of Financial Results for the Year Ended March 31, 2024:
Quarterly sales performance(Millions of yen)

１

Significant COVID-19
impactFY2023

Recovery
periodDAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

7

Overview of Financial Results for the Year Ended March 31, 2024:
Performance by segment(Millions of yen)

FY2023

Commercial karaoke

Net sales
Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

Karaoke cabins and restaurants

Net sales
Operatingprofit

FY2019１

FY2020

FY2021

FY2022

FY2023

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

8

Overview of Financial Results for the Year Ended March 31, 2024:
Performance by segment

FY2023

Music software(Millions of yen)

Net sales
Operatingprofit

FY2019FY2020

FY2021

FY2022

FY2023

Other businesses

Net sales
Operatingprofit

FY2019１

FY2020

FY2021

FY2022

FY2023

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

9

Overview of Financial Results for the Year Ended March 31, 2024:
Commercial karaoke ,Karaoke cabins and restaurants

FY2023

Commercial karaoke(Millions of yen)(vs. sales
ratio)FY2022(vs. sales
ratio)FY2023

Change% change

Net sales

57,731(100.0%)61,078(100.0%)+3,347+5.8%

Operating profit

13,593(23.5%)

12,384(20.3%)(1,208)(8.9)%[Notes] Launched new flagship model LIVE DAM AiR in April and shipped more units than originally planned.
 Sought to strengthen the stable profit base by increasing the number of equipment rentals and expediting the replacement of previous models withnewer ones.
 Strived to improve our Karaoke DAM products by further expanding our visual content, including live videos, animated videos, and music videos.
 In the seniors’ market, strove to increase number of units in operation, as number of facilities allowing sales visits increased; utilized web as well.
 Net sales increased owing to strong shipments of new products and steady increases in the number of equipment rentals and the number of DAM units
in operation, while operating profit decreased mainly due to the impact from having invested in the equipment for rental and contents that will form abase of stock income in the future.

Karaoke cabins and restaurants(Millions of yen)(vs. sales
ratio)FY2022(vs. sales
ratio)FY2023

Change% change

Net sales

51,584(100.0%)64,733(100.0%)+13,149+25.5%

Operating profit

(59)

-

7,100

(11.0%)+7,159-[Notes] Karaoke: Open 10, Close 12, Number of karaoke cabins at the period-end 506 Restaurant: Open 11, Close 23*, Number of restaurants at the period-end
159 *Mainly due to integration of mixed business operations
 Due to the downgrading of the status of COVID-19’s infectious disease classification in May, we have seen a recovery trend in the flow of customers
since the beginning of the fiscal year under review.
 Existing stores compared to pre COVID-19: Karaoke cabins 92%; Restaurants 112%, Existing stores year on year: Karaoke cabins 122%; Restaurants
129%
 For BIG ECHO karaoke cabins, we tried to bring back customers visiting karaoke cabins through collaboration with popular artists as well as various
campaigns making 35th anniversary more exciting, such as the Good Company Room and BIG ECHO Karaoke Grand Prix, while introducing the topend model early in an effort to enhance customer satisfaction.
 For restaurants, we made efforts to increase customer traffic in a wide-ranging manner by, for example, expanding the call center function to win morereservations for banquets and opening three premises in the darts business.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

10

Overview of Financial Results for the Year Ended March 31, 2024:
Music software and other businesses

FY2023

Music software(Millions of yen)(vs. sales
ratio)FY2022(vs. sales
ratio)FY2023

Change% change

Net sales

6,430(100.0%)6,733(100.0%)

+303

+4.7%

Operating profit

228(3.5%)

373(5.5%)+145+63.6%[Notes] With events and concerts starting to resume, the music industry has been regaining vigor and product sales of CDs, DVDs,
etc. have shown modest recovery.
 The TV program production business progressed as planned.

Other businesses(Millions of yen)(vs. sales
ratio)FY2022(vs. sales
ratio)FY2023

Change% change

Net sales

12,411(100.0%)14,200(100.0%)+1,789+14.4%

Operating profit

1,581(12.7%)

1,469(10.4%)(111)(7.0)%[Notes] The parking business operating “The Park” brand made steady progress, and the business scale expanded to more than
2,500 parking facilities and 30,000 parking spots as of the end of the fiscal year under review.
 We took action to increase awareness of “The Park” brand through TV commercials and other channels.
 Our acquisition of Crest Co., Ltd. (“Break Parking”: 700 facilities and 6,000 parking spaces) as a subsidiary had no impact on
the current period’s results.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

11

Overview of Financial Results for the Year Ended March 31, 2024:
Consolidated balance sheets

FY2023(Millions of yen)

AssetsCurrent
assetsNon-current
assets

As of March 31,
2024

188,623

211,386+22,762

93,42973,479(19,950)

Decrease in cash and deposits (22,117)
Increase in property, plant and equipment(new head office building, etc.) +36,941
Increase in intangible assets (goodwill, etc.)+4,621

Change95,193

137,906+42,71380,707102,394+21,686

Current
liabilities

35,28836,914+1,625

Non-current
liabilities

45,41965,480+20,061

107,915

108,991+1,075

Liabilities

Net assets

１

As of March 31,
2023

Notes

Increase in long-term borrowings +20,398

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

12

Overview of Financial Results for the Year Ended March 31, 2024:
Consolidated management indicators

FY2023

Profitability
FY2022

FY2023

ChangeOperating profit to net sales (%)

10.1%

12.7%

+2.6%pt

Basic earnings per share (yen)76.21 yen

117.01 yen+40.8 yenSoundness
As of March 31, 2023

As of March 31, 2024

Net assets (Millions of yen)

107,915

108,991+1,075Equity ratio (%)

56.4%

50.9%

(5.5)%pt

Cash flows(Millions of yen)

FY2022

１

ChangeFY2023

ChangeCash flows from operating
activities

24,86926,799+1,930Cash flows from investing
activities(12,104)(55,915)(43,810)

Cash flows from financing
activities(9,493)

6,926+16,420

Net increase (decrease) in cash andcash equivalents

3,298(22,117)(25,415)

Cash and cash equivalents
at end of period

71,42349,306(22,117)

Free cash flows

12,765(29,115)(41,880)

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

13

FY2023

Outlook of Financial Results
for the Year Ending March 31, 2025

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

Outlook of Financial Results for the Year Ending March 31, 2025:
Full-year consolidated performance forecasts

FY2023(Millions of yen)

FY2022(year ended March 31, 2023)

FY2023(year ended March 31, 2024)

FY2024 (forecast)(year ending March 31, 2025)

Net sales

128,156-

146,746-

152,700-

Operating profit

12,954

10.1%

18,601

12.7%

18,80012.3%

Ordinary profit

13,601

10.6%

19,561

13.3%

19,600

12.8%

Profit

8,320

6.5%

12,568

8.6%

13,100

8.6%

Earnings Per Share(EPS)*1

76.21

Net sales

117.01
Operating profit

20,000146,746

150,000

18,60118,800122.60Ordinary profit
19,561

20,00019,600

Profit15,000152,700

128,156

12,56815,00012,95415,00013,601

10,00013,1008,320

100,000

10,00010,000

5,000

5,000

5,000
50,0000

FY2022 FY2023 FY2024
Results Results Forecast

00

FY2022 FY2023 FY2024
Results Results Forecast

FY2022 FY2023 FY2024
Results Results Forecast

0

FY2022 FY2023 FY2024
Results Results Forecast*1 Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Basic earnings per share were calculated as if said split had been carried out atthe beginning of the previous fiscal year.
*2 The earnings forecast has been made based on information available as of the publication date of this material, and actual operating results may differ
from such forecasts due to various factors.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

14

Outlook of Financial Results for the Year Ending March 31, 2025:
Factors for change of net sales/operating profit
Net sales

FY2024
Forecast

Change% change

Total

18,60118,800

+199

+1.1%

+2.8%

Commercial
karaoke

12,384

12,500

+116

+0.9%

+1,567+2.4%

Karaoke cabins
and restaurants

7,100

7,600

+500

+7.0%

5,500

(1,233)(18.3)%Music software

373

400

+27

+7.2%

18,100+3,900+27.5%

Other

1,469

1,300

(169)

(11.5)%

Corporate
expenses(2,726)(3,000)(274)-

FY2024
Forecast

Change% change

Total

146,746

152,700+5,953+4.1%

Commercial
karaoke

61,07862,800+1,722

Karaoke cabins
and restaurants

64,733

66,300Music software

6,733

Other

14,200

Unit: Billions of yen

Karaokecabins andrestaurantsMusic
softwareOther
FY2024
Forecast

１

FY2023Results

146.7
Increase in number of
DAM units in operation+1.7

Increase in net sales
at existing stores
Loss of sales oftransferred subsidiary

Commercial
karaoke+1.5

Karaokecabins andrestaurants(1.2)

Making Crest Co., Ltd. a subsidiary

152.7

18.6
Increase in rental equipment
replacement costs
Increase in content-related expenses
Increase in SG&A expenses+0.1

Increase in net sales
at existing stores

+0.0

Music
software

+3.9

Other
(Including corporate
expenses)

FY2024
Forecast+0.5

Increase in amortization of goodwill
Head office relocation expenses(0.4)

Rise in personnel costs due
to base-pay increases

Commercial
karaoke(Millions of yen)

OperatingprofitFY2023Results

FY2023Results

FY2023Results

FY202318.8

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 202415

Outlook of Financial Results for the Year Ending March 31, 2025:
Corporate topics

FY2023

Corporate topics
Optimization of business portfolio• Full-year impacts of M&A during the current period(1) Music software business: The transfer of UNION TV & MOTION PICTURE CO., LTD. represents a loss of its contributions to net
sales (1,500 million yen) and operating profit (100 million yen) in the current period.
(2) Other businesses (parking): The acquisition of Crest Co., Ltd. as a subsidiary buoyed sales by 2,500 million but also pushed up
goodwill amortization with a 500 million increase in SG&A expenses.
Relocation of head office functions• Acquired non-current asset in Mita 3-chome, Minato-ku in February 2024 for relocatinghead office functions.
• Plan to begin the relocation around January 2025; associated costs are expected to beapprox. 300 million yen (SG&A expenses).
• Now exploring options for utilizing the current head office building and other realestate, including possibly selling them off.
Rise in personnel costs due to base-pay increases• Increased the base pay of head office staff as of April 2024 (average increase: approx.
6%).
• The amount of the bottom-line impact is expected to be approx. 1,000 million yen (costof sales + SG&A expenses).

⇒ We forecast that our earnings will be boosted by higher sales in all
business segments except music software, but operating profit will bemostly on par with the current period due to the impact of increases
in various costs.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

16

Outlook of Financial Results for the Year Ending March 31, 2025:
Initiatives by segment (1)FY2023

Commercial karaoke business•

During the current period we continued to pursue investment into replacement of rental equipment assets, with a focus on LIVE DAM AiR, as wellas investment into karaoke contents such as sound tracks and video. Strengthen stable profit base and aim to further increase value of DAM
brand.
• We will seek to increase the number of DAM systems in operation and market share by implementing actions tailored to each market.

Market-focused initiatives⇒ Profits are forecast to grow modestly, buoyed by higher sales from increases in the number of DAM systems in operation andequipment rentals, and by rises in cost of sales and SG&A expenses due to upfront investments to strengthen profit base.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 202417

Outlook of Financial Results for the Year Ending March 31, 2025:
Initiatives by segment (2)FY2023

Karaoke cabins and restaurants businessKaraoke cabin initiatives• “BIG SMILE, BIG ECHO. Let’s sing, laugh, and do more with everyone.”• Enhance quality of equipment as a chain directly operated by a karaoke systemmanufacturer (early deployment of top model, thorough aesthetics, etc.)• Enhance quality of service through talent development/training and systematization(automated reception/payment, smartphone-based ordering, etc.)• Attract casual users with collaborative projects involving diverse artists, characters,companies, etc.
Restaurant initiatives• Develop new brands and spruce up existing brands based on precise identification of customer needs• Promote the DK dining app to attract repeat customers⇒ Sales and profits are expected to rise with growth in sales by existing karaoke cabins and in the number of locations.

Music software business• Work to discover new artists and create hit songs, and construct a solid revenue model by advancing the music publishing business• The transfer of subsidiary UNION TV & MOTION PICTURE CO., LTD. during the current period represents the loss of its
contributions to net sales and operating profit⇒ Despite the decrease in revenue from the loss of the former subsidiary’s sales contributions, operating profit is anticipated tobe mostly on par with the current period.

Other businesses• In the parking business, aim to grow size of business through development of new facilities, including M&As, while also working
to spread awareness of The Park brand through methods such as television commercials.
• While sales by Crest Co., Ltd., acquired as a subsidiary during the current period, are expected to contribute to full-year results,
goodwill amortization will rise

⇒ Revenue is forecast to rise from the growth of the parking business, but goodwill amortization and other factors will likely
shrink profits.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 202418

Outlook of Financial Results for the Year Ending March 31, 2025:
Shareholder returns

FY2023■ Dividend forecast- We decided to increase the dividend forecast for the next fiscal year (FY2024), in comparison to the current fiscal year, at 57 yen(annual).
FY2023 (Year ended March 31, 2024)

FY2024 Forecast (Year ending March 31, 2025)

InterimYear-end

AnnualInterimYear-end

Annual28 yen29 yen57 yen28 yen(forecast)

29 yen(forecast)

57 yen(forecast)

Dividend per share
Dividend per equity

5.8%

5.5%

Payout ratio

48.7%

46.3%

■ Repurchasing of shares- The Company resolved to repurchase the shares at a meeting of the Board of Directors held on May 13, 2024.
<Outline>
Period: From May 14, 2024 to August 31, 2024
Number of shares to repurchase: Up to 1,250 thousand shares *Reference: 1.17% of the total number of shares issued
Amount of repurchase: Up to 2,000 million yen

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

19

FY2023

References

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

References: The Group corporate message

FY2023“Singing as we go”～Let’s sing as we go everyday. If we sing, tomorrow will be a better day～Singing as we go
Let’s sing when we’re happy.
Let’s sing when we’re sad to let it all go.
Let’s sing to make new friends.
Let’s sing when we’re alone to connect withourselves.
Let’s laugh as we sing. Let’s cry as we sing.
Let’s cheer up as we sing.
Singing isn’t just fun.
Singing has the power to heal the mind andbody,
And lead the world in a better direction.
Adults and kids, young people and old people,
Let’s all sing as we go everyday.
If we sing, tomorrow will be a better day.
DAIICHIKOSHO Group will spreadthe incredible power of singing throughout
society through various actions.

１

DAIICHIKOSHO Group has created the
new Group corporate message “Singing as
we go” based on our aspiration to have more
people enjoy karaoke that rejuvenates themind and body.
Based on this message, we will spread theincredible power of singing throughout
society through various actions and help
enrich people’s daily lives.
In addition, on Singing special website, we
introduce the delightful effects of singing on
the mind and body, the power of songs andmusic, as well as feature articles that will
make you want to sing.

■Singing Special Website:
https://www.clubdam.com/singing/

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

20

References:

FY2023

Actions for implementing management conscious of the cost of capital and stock price (1)■ Actions for implementing management conscious of the cost of capital and stock price
The Company strives to properly ascertain the cost of shareholders’ equity and the weighted average cost of capital (WACC) and thencompare these figures against the return on capital for our Group. The results of these comparisons are reported to and deliberated on by
the Board of Directors.
The Company’s return on capital as viewed through the ROE and ROIC metrics declined temporarily due to the impact of the pandemic.
Despite that, our return on capital has stayed above the cost of capital, which is the return generally expected by the market. Even whenviewed through the PBR and PER metrics, we believe that DAIICHIKOSHO CO., LTD. has gained a notable level of recognition from themarket.
As we move forward, we will seek to increase operating profit as we pioneer new businesses that will serve as the mainstay for new
revenue in addition to enhancing the profitability of our current businesses. We will equally endeavor to enhance the return on capital by
optimizing our balance sheet as we execute share repurchases at the appropriate times and take other actions in addition to providing astable dividend.
In addition, we are also working to reduce shareholders’ equity costs through more enhanced information disclosure, including in English.

■ ROE (Return on equity)(Millions of yen)

FY2010 to FY2019

COVID-19

From FY2022
FY2023ROE

10-yearaverageROE

11.7 %

11.6%

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

21

References:

FY2023

Actions for implementing management conscious of the cost of capital and stock price (2)■ Dividend distributions & shareholder returns (Past 10 years)
The Company regards both increasing corporate value over the medium- and long-term and returning profits to our shareholders as
management issues of vital importance.
Our basic policy is to aggressively return profits to our shareholders in line with consolidated corporate performance using a consolidated
payout ratio of 30% or higher as a guide. We have been able to achieve a pay-out ratio higher than that and returned profits through share
repurchases.
FY2014FY2015FY2016FY2017FY2018FY2019FY2020

FY2021

FY2022

FY2023

FY2024(forecast)Profit(Millions of yen)

13,65012,59911,115

13,115

15,60012,556(18,782)

5,196

8,320

12,568

13,100Return on equity (ROE)

(%)

13.0%

11.4%

9.7%

10.9%

12.2%

9.5%

(15.7)%

5.0%

7.9%

11.7%

11.9%

Dividend per share (actual)

(Yen)

100.0

108.0

109.0

111.0

112.0

113.0

113.0

113.0

113.0

57.0

57.0

Dividend per share (after split)

(Yen)

50.0

54.0

54.5

55.5

56.0

56.5

Payout ratio

(%)

42.5%

49.5%

56.2%

48.3%

40.8%

50.9%

Dividend on equity (DOE)

(%)

5.5%

5.7%

5.5%

5.2%

5.0%

4.8%

Repurchasing of shares(Millions of yen)

603

1,700

2,166

1,001

1,677

1,719

Total return ratio

(%)

46.9%

62.9%

75.7%

55.8%

51.5%

64.5%

(67.0)%

56.5

56.5

56.5

57.0

57.0

118.7%

74.1%

48.7%

46.3%

5.3%

5.9%

5.9%

5.8%

5.5%

6,368

0

0

6,000

2,000

118.7%

74.1%

96.2%

61.5%

-

■ Approach to capital investment
Our Group is engaged in business involving commercial karaoke, karaoke cabins and restaurants, music software, and otheroperations. We implement plans for new and upgraded equipment principally through investment in new karaoke equipment rentals
and audio and visual content production, as well as investment in opening new karaoke cabins and restaurants.
The investment in karaoke equipment rentals for the commercial karaoke business takes the form of installing new karaoke equipment
for customers that have just signed lease agreements as well as updating models provided to existing customers. Setting up new
equipment for our new clientele, in particular, is dependent upon economic trends and industry availability of equipment ready fordelivery. In addition, we emphasize audio and visual content investment that enhances the competitiveness of our karaoke DAM
products.
When opening karaoke cabins and restaurants as part of the karaoke cabins and restaurants business, we make plans not only torenovate our current establishments, but also open new cabins and restaurants.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

22

References (Commercial karaoke): Primary product lineupLIVE DAM AiRFREE DAM LIFE

（DAM-XG8000R）（DAM-F850）

The highest sound quality,
a live show experience
Further expands the AI experience

Clearer image and sound
DK elder system for the elderly● “Ai Assistant” voice recognition feature is compatible with foreign language
speech ● Saitama Super Arena and Excite Live Hall are added to “LiveSound” feature ● Largest collection of actual artist/live show video contents in
the industry (according to in-house investigation)● Anti-virus and anti-bacterial specifications ●Function to automatically create progress programsby purpose ● Remote session function that can beenjoyed simultaneously between distant facilities

Party DAM 20Ｖ

Cyber DAM ＋(DAM-PD20Ｖ)(DAM-G100W)

Integrated mobile type for hotels
and event venues

Music lineup specialized
for night time
● Equipped with the industry’s first double monitor, processed with anti-virus
and anti-bacterial coating ● Add presence with “Live Echo” ● Substantiallystrengthened enka and pop songs, foreign songs, and duet songs that havebeen well-received in the night market● To allow usage as a podium for lectures, thedisplay at the top can be stored in the main body
● Come with a wide variety of party contents forvarious usage scenes at hotels, inns, weddinghalls, etc.

Harmony microphone

SmartDAM AiR(TM30R)(WITM-500P/W)

Easier to use! More enjoyable!
More intuitive confirmation ofreserved songs/manipulation of songs settings

Come with “DAM button” that changes
user’s voice to a more singable soundquality● Equipped with new operating panel for intuitive use of most common
karaoke features ● New search function that encompasses popular songs ineach genre ● Features antiviral/antibacterial coating

１

FY2023● Infrared wireless optimizes compatibility with DAM
karaoke system ● High-quality sound eliminating mic
feedback ● Come with a switch that changes the voice
quality between Sharp ↔ Mild

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

23

References (Karaoke cabins and restaurant):
Karaoke and restaurant brand list

FY2023

Karaoke Shops
Big Echo

Karaoke Mac

Karaoke CLUB DAM

Mega Big

B-GARAGE

Restaurants/Bars
Private dining

Dining bars/bars

RakuzoMinatoichiya

JibundokiSushi ya
Harenohi

Senyaichiya

Totouo

Bars

CELTS

１

Umekono ie

Kyomachi shizuku

Tokachi Ishikari
Hakodate

Bistro ya

Seseragi wokikinagara

Amusement bars

HIGHBALL BAR

J’s BarREGALO

Darts One

Kitchen

FOREST DINER

GintenMatsuri sakaba

AmatsuRestaurants/cafes

MARUNOUCHI
BASE

Ginza Coffee

Mochinokipasta

Time is CurryDAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

Ichidan24

References (Other businesses): Parking business

FY2023Parking business
Proposing land utilization and creating more value

Armed with the trust we have built up with our customers nationwide as aleading company in the karaoke industry, we are developing our meteredparking business under the name of “The Park,” proposing effective useof land that contributes to local communities which satisfy our customers
with safety and security. We provide a thorough support, fromestablishment of a new facility to follow-up service.
We are promoting this business nationwide to make it a new pillar of ourearnings, and as of March 31, 2024 expanded to a scale of 2,500
facilities and 30,000 parking spaces. In February 2024, we made Crest
Co., Ltd., which operates “Break Parking” in Tokyo, Osaka, Okinawa, andother cities, a wholly owned subsidiary, bringing the Group’s total to3,300 facilities and 37,000 parking spaces.
We work to spread awareness of The Park as an attractive option to
make use of available land through television commercials (focused onregionals cities) that feature Kenichi Mikawa as a fictional Enka singer
named “Tochio Katsuyo” (Tochio Katsuyo is a homonym of the Japanesefor ‘land use’).

(Facilities)(Parking spaces)

TV commercial mascot character
Tochio Katsuyo

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

25

References (Other businesses):

FY2023

Musicians of music software companies/other businesses
Musicians of music software companies◆ Enka, Pop◆ Enka, Pop

Namito Harada

Kaori Mizumori◆ J-pop◆ J-pop

Jams Collection

BERRY GOODMANBGM Broadcasting Business

Online Business[Commercial use]
BGM service utilizing dedicated mobile network.

[Commercial use ]BGM service utilizing NTT Flet’s internet network.

A karaoke user community service linked to the DAM
karaoke system. It allows users to film and record
karaoke performances and publish them on theInternet.
Internet streaming karaoke. A monthly subscription
service that allows users to enjoy karaoke with video
and lyrics with their computer.

*Star digio’s service for households (satellite broadcasting) was terminated on March 31, 2024.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024

26

FY2023

The earnings forecast of this material has been made based on information
available as of its publication date, and actual operating results may differ fromsuch forecasts due to various factors.

For questions regarding this material, please contact
Corporate Planning Division (TEL: 03-3280-2774).

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2024