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 ending March 31, 2024

Flash Report on the Consolidated Results for the Third Quarter Ended December
31, 2023 [JGAAP]
February 8, 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 to Submit the Quarterly Securities Report: February 13, 2024
Start Date for Dividend Payment: —Availability of Supplementary Briefing Material on Quarterly Financial Results: None
Schedule of Quarterly Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Nine Months Ended December 31, 2023 (From April 1, 2023, toDecember 31, 2023)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Nine months ended
December 31, 2023
Nine months ended
December 31, 2022

Operating profit

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

109,864

16.2

15,09855.8

15,683

53.2

94,507

35.2

9,690

614.3

10,238

330.6

Profit attributable toowners of parent
Millions of yen

Basic earnings per share

Diluted earnings per share

Yen

Yen

%

Nine months ended
10,531
17.0
97.88
97.69
December 31, 2023
Nine months ended
9,001
74.5
82.44
82.31
December 31, 2022
(Notes) 1. Comprehensive income:Nine months ended December 31, 2023: 10,839 million yen 15.6%
Nine months ended December 31, 2022: 9,375 million yen 85.9%
2. 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.

(2) Consolidated financial position
Total assets
As of December 31, 2023
As of March 31, 2023

Net assets

Equity ratio

Millions of yen

Millions of yen%

176,636
188,623

106,703107,915

59.5
56.4

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CO.,

LTD.

(Reference) Shareholders’ equity:
As of December 31, 2023: 105,161 million yen
As of March 31, 2023:
106,451 million yen

2. Dividend
First Quarter

Second Quarter

Annual dividend
Third Quarter

Yen

Yen

Yen

Year-end

AnnualYen

Yen

Year ended March 31, 2023
―
56.00
―
57.00
113.00Year ending March 31, 2024
―
28.00
―
Year ending March 31, 2024
29.00
57.00
(forecast)(Notes) 1. Changes in dividends forecast from most recently announced figures: None
2. 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 FY2023, the Year Ending March 31, 2024 (From April
1, 2023, to March 31, 2024)
Net salesYear ending March 31,
2024 (full year)(Percentage figures indicate increase/decrease from a year earlier.)
Operating profit
Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

144,500

12.8

18,00038.9

19,10040.4

Profit attributable toowners of parent
Millions of yen

Basic earnings per share%

Yen

Year ending March 31,
12,70052.6
118.852024 (full year)(Note) Changes in forecast of consolidated performance from most recently announced figures: None

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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) Adoption of special accounting policies for quarterly financial statements: None
(3) 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
(4) Number of common shares issued
1) Number of shares issued
As of109,468,400 As of
109,468,400(including treasury shares)
December 31, 2023
shares March 31, 2023
shares2) Number of treasury shares
As of
2,613,807 As of
282,604
3) Average number of shares
December 31, 2023
shares March 31, 2023
sharesduring the period
Nine months ended
107,597,202 Nine months ended
109,185,840
December 31, 2023
shares December 31, 2022
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.
* These consolidated financial results are outside the scope of quarterly review 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 “Explanation of Forecastof Consolidated Performance and Other Forward-looking Information” on page 7 of the Attachments.

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CO.,

LTD.

Table of Contents - Attachments
1. Qualitative Information on Quarterly Performance ......................................................................................... 5(1) Explanation of Operating Results ................................................................................................................ 5(2) Explanation of Financial Position ................................................................................................................ 7(3) Explanation of Forecast of Consolidated Performance and Other Forward-looking Information ............... 7
2. Quarterly Consolidated Financial Statements and Primary Notes .................................................................. 8(1) Quarterly Consolidated Balance Sheets ....................................................................................................... 8(2) Quarterly Consolidated Statements of Income and Comprehensive Income ............................................ 10(Quarterly Consolidated Statements of Income) .................................................................................... 10(Quarterly Consolidated Statements of Comprehensive Income) .......................................................... 11(3) Notes to Quarterly Consolidated Financial Statements ............................................................................. 12(Notes on Going Concern Assumption) ................................................................................................. 12(Notes in Case of Significant Changes in Shareholders’ Equity) ........................................................... 12(Segment Information) ........................................................................................................................... 12(Quarterly Consolidated Statements of Income) .................................................................................... 13(Significant Subsequent Events) ............................................................................................................ 14

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CO.,

LTD.

1. Qualitative Information on Quarterly Performance(1) Explanation of Operating Results
In the nine months ended December 31, 2023 (the “nine months under review”), Japan’s economy showed signs of amoderate recovery due to the downgrading of the status of COVID-19 under the Act on the Prevention of Infectious
Diseases and Medical Care for Patients with Infectious Diseases in May and a recovery trend in consumer spending andcapital expenditures. 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 prolonged depreciation of the yen and price hikes ofcommodities.
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 nine months under review, net
sales amounted to 109,864 million yen (up 16.2% year on year), operating profit was 15,098 million yen (up 55.8% year onyear), and ordinary profit was 15,683 million yen (up 53.2% year on year). Profit attributable to owners of parent amounted
to 10,531 million yen (up 17.0% year on year), as subsidy income of 2,920 million yen posted in the previous
corresponding period was absent in the nine months under review.
(Millions of yen)

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

Nine months ended
December 31, 2022
94,507
9,690
10,2389,001

Nine months ended
December 31, 2023
109,864
15,09815,683
10,531Year-on-yearchange15,356
5,407
5,445
1,530

% change
16.2%
55.8%
53.2%
17.0%

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, while operating profit decreased by 8.9% year
on year mainly due to an increase in costs related to equipment rentals and in selling, general and administrative expenses.

5DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Net sales
Operating profit

Nine months ended
December 31, 2022
43,414
10,898Nine months ended
December 31, 2023
45,9509,927

Year-on-year change% change

2,535
(971)

5.8%
(8.9)%(Karaoke cabin and restaurant business)
In the karaoke cabin and restaurant business, we opened eight karaoke cabins and seven restaurants and closed three
karaoke cabins and 15 restaurants due to the integration of food and beverage complex types, and we operated 513 karaokecabins and 163 restaurants as of the end of the nine months 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 nine months 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 nine months under review,
existing karaoke cabin sales recovered to a level approximately 8% lower than before the COVID-19 pandemic andrestaurants to a level approximately 12% higher, for an approximately 25% increase for karaoke cabins and approximately
35% 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 such as
Yuuri and Momoiro Clover Z, 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, while at the same time introducing the top-end model, LIVE DAM AiR, early and equipping 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, for example, expanding thecall center function to win more reservations for banquets and opening three premises in the darts business.
As a result, net sales increased by 30.1% year on year, and operating profit amounted to 5,619 million yen.
(Millions of yen)

Net sales
Operating profit

Nine months ended
December 31, 2022
37,240(709)

Nine months ended
December 31, 2023
48,446
5,619

Year-on-year change% change

11,206
6,328

30.1%
―

(Music software business)
In the music software business, product sales of CDs and DVDs and the TV program production business progressed
nearly 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 100.1%, respectively, year on year.
(Millions of yen)

Net sales
Operating profit

Nine months ended
December 31, 2022
4,680
124

Nine months ended
December 31, 2023
4,899
249

Year-on-year change
218
124% change
4.7%
100.1%(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 approximately 2,400 parking facilities and 30,000 parking spots as of the endof the nine months 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 15.2% year on year owing to factors such as an increase in revenue from the parking
business, and operating profit decreased by 5.0% year on year due to the impact of increases in selling, general andadministrative expenses, including advertising expenses related to the parking business.

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CO.,

LTD.

(Millions of yen)

Net sales
Operating profit

Nine months ended
December 31, 2022
9,173
1,211

Nine months ended
December 31, 2023
10,5681,151

Year-on-year change% change

1,395
(60)

15.2%
(5.0)%(2) Explanation of Financial Position
Total assets at the end of the nine months under review decreased by 11,987 million yen from the end of the previous
fiscal year to 176,636 million yen.
Major changes from the previous fiscal year were a decrease in cash and deposits by 19,425 million yen and an increasein notes and accounts receivable – trade by 1,731 million yen in current assets.
In non-current assets, karaoke equipment for rental and karaoke cabin and restaurant facilities increased by 3,012
million yen and 1,809 million yen, respectively.
Liabilities decreased by 10,775 million yen from the end of the previous fiscal year to 69,932 million yen.
This was mainly due to a decrease of 10,038 million yen in long-term borrowings in non-current liabilities.
Net assets decreased by 1,212 million yen from the end of the previous fiscal year to 106,703 million yen.
The decrease is primarily attributable to an increase in retained earnings of 10,531 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) Explanation of Forecast of Consolidated Performance and Other Forward-looking Information
There is no change to the full-year performance forecast announced on August 9, 2023.
The forecast was prepared based on information available on the date this report was released, and actual results mayvary from forecast values due to various factors in the future.

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DAIICHIKOSHO

CO.,

LTD.

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

FY2022Current Third quarter(As of March 31, 2023) (As of December 31, 2023)
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade
Inventories
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Karaoke equipment for rental, net
Karaoke cabin and restaurant facilities, net
Land
Other, net
Total property, plant and equipment
Intangible assets
Goodwill
Other
Total intangible assets
Investments and other assets
Investment securities
Leasehold and guarantee deposits
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

8

71,812
5,367
11,735
4,888(374)
93,42952,386
7,099
10,046
6,459(345)
75,646

6,306
9,192
40,2186,574
62,292

9,319
11,002
40,218
7,491
68,032

606
6,056
6,663

549
5,496
6,045

4,914
14,477
6,986(140)
26,237
95,193
188,623

5,559
14,494
6,995(137)
26,911
100,989
176,636DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2022Current Third quarter(As of March 31, 2023) (As of December 31, 2023)
Liabilities
Current liabilities
Notes and accounts payable - trade
Short-term borrowings
Income taxes payable
Provision for bonuses
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
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

9

4,954
13,511
3,106
1,151
12,56435,288

4,198
13,154
3,210
1,173
12,63134,36931,13521,096

1,113

685

7,991
2,018
3,160
45,41980,707

8,362
2,008
3,410
35,56369,932

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

12,3504,211
94,313(6,571)
104,304

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

1,250
(733)
184
155
857
350
1,190
106,703
176,636DAIICHIKOSHO

CO.,

LTD.

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

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating profit
Non-operating income
Interest income
Insurance claim income
Cooperative monetary aid received
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange losses
Cancellation penalty
Other
Total non-operating expenses
Ordinary profit
Extraordinary income
Gain on sale of non-current assets
Gain on bargain purchase
Subsidy income
Total extraordinary income
Extraordinary losses
Loss on disposal of non-current assets
Impairment losses
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

10

Nine months ended
December 31, 2022
(From April 1, 2022, toDecember 31, 2022)

Nine months ended
December 31, 2023
(From April 1, 2023, toDecember 31, 2023)

94,50761,42533,082
23,391
9,690

109,864
69,79340,07024,972
15,098

17
206
142
－
530
897

18
72
140
6
572
809

130
53
37
128
349
10,238

104
－
5
114
224
15,683

78
112
2,920
3,110

2
－
－
2

56
117
173
13,175
2,799
1,350
4,150
9,025
24
9,001

125
81
207
15,478
4,916
4
4,921
10,55725
10,531DAIICHIKOSHO

CO.,

LTD.

(Quarterly 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

11

Nine months ended
December 31, 2022
(From April 1, 2022, toDecember 31, 2022)

Nine months ended
December 31, 2023
(From April 1, 2023, toDecember 31, 2023)

9,025

10,557

249
74
25
350
9,375

203
84
(5)
282
10,8399,351

10,814

24

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CO.,

LTD.

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

(Notes in Case of Significant Changes in Shareholders’ Equity)
Pursuant to a resolution at the Board of Directors meeting held on February 8, 2023, the Company purchased 2,331,100
treasury shares. With this purchase and other factors, the amount of treasury shares increased by 6,000 million yen during
the nine months ended December 31, 2023 and treasury shares amounted to 6,571 million yen at the end of the nine months
under review.

(Segment Information)[Segment information]
Nine months ended December 31, 2022 (From April 1, 2022, to December 31, 2022)
1. Information on the amounts of net sales and profit or loss by reportable segment(Millions of yen)
Reportable segments

Net sales
Segment profit orSegment loss
(Operating profit orOperating loss)

Notes:

Adjusted
amount(Note 2)

Postedamount to theconsolidated
quarterlystatements ofincomeCommercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Other(Note 1)

Total

43,41437,2404,680

85,334

9,173

94,507－

94,507

10,898(709)

124

10,313

1,211

11,525(1,834)9,690

1. The category “Other” comprises a business segment not attributable to reportable segments, including
parking, real estate leasing and BGM broadcasting businesses.
2. The (1,834) 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.

2. Information on impairment loss of non-current assets or goodwill, etc. by reportable segment
The statements are omitted due to little significance.

Nine months ended December 31, 2023 (From April 1, 2023, to December 31, 2023)
1. Information on the amounts of net sales and profit or loss by reportable segment(Millions of yen)
Reportable segments

Net sales
Segment profit(Operating profit)

Notes:

Adjusted
amount(Note 2)

Postedamount to theconsolidated
quarterlystatements ofincomeCommercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Other(Note 1)

Total

45,95048,446

4,899

99,295

10,568109,864－

109,864

9,927

5,619

249

15,795

1,151

16,947(1,848)15,098

1. The category “Other” comprises a business segment not attributable to reportable segments, including
parking, real estate leasing and BGM broadcasting businesses.
2. The (1,848) million yen adjustment posted to segment profit primarily composed of general andadministrative expenses incurred by the administrative department at the head office that are not
attributable to any particular reportable segment.

2. Information on impairment loss of non-current assets or goodwill, etc. by reportable segment
The statements are omitted due to little significance.

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CO.,

LTD.

(Quarterly 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.

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CO.,

LTD.

(Significant Subsequent Events)(Acquisition of Non-current Assets)
At a meeting of the Board of Directors held on January 29, 2024, the Company resolved to acquire non-current assets.

(1) Reason for the acquisition
In anticipation of the Group’s future growth, the Company resolved to acquire non-current assets for the
purpose of amalgamating head office functions as an initiative toward human capital management. The aim of theacquisition is the enhancement of medium- to long-term corporate value by striving for the revitalization ofcommunication among employees and the improvement of productivity.
(2) Overview of the acquired asset
Name and address of asset

Acquisition cost

Prime Takanawa Gateway(3-9-6 Mita, Minato-ku, Tokyo)

32.1 billion yen

Current status
Site area: 2,604 m2 (787.7 tsubo)
Total floor area: 11,930.6 m2 (3,609 tsubo)
1 basement level and 13 aboveground levels(Note) Acquisition cost is an estimated amount that includes the various costs accompanying the transaction (real estate
acquisition taxes, consumption taxes, brokerage fees, etc.)(3) Overview of counterpart
1) NameM3 Project Limited

2) Address

201, 3-22-10 Toranomon, Minato-ku, Tokyo
Masaki Aguni
Executor of Duties
Representative Partner, General Incorporate Association M3 Project
Acquisition, holding, and divestment of beneficial interests in real property
trusts.
100,000 yen

3) Name and position of representative4) Description of business5) Capital
6) Date of incorporation
7) Relationship between the listedcompany and this company

August 17, 2022
There are no capital, personnel, or trading relationships or mattersconstituting an affiliated party.

(Note) There are no capital, personnel, or trading relationships between the counterpart and the Company that should bestated. In addition, there are no matters constituting an affiliated party of the Company.

(4) Acquisition schedule
1) Date of Board of Directors resolution

January 29, 2024

2) Date of conclusion of agreement

January 30, 2024

3) Date of delivery of property

February 29, 2024 (to be confirmed)(Borrowing of Funds)
At a meeting of the Board of Directors held on January 29, 2024, the Company resolved to undertake a loan of funds as described
below.
(1) Use of funds

Borrowing of funds required for the acquisition of real property(2) Lender

8 counterparty financial institutions (to be confirmed)(3) Borrowed amount(4) Interest charged forborrowing(5) Date of loan execution

30. 0 billion yen (to be confirmed)(6) Loan period

5 – 7 years (to be confirmed)(7) Security

None (to be confirmed)

Fixed interest
On or after February 20, 2024 (to be confirmed)

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CO.,

LTD.

(Business Combination as a Result of Acquisition)
At a meeting of the Board of Directors held on January 29, 2024, the Company resolved to acquire the shares of Crest Co., Ltd. andmake it a subsidiary. As a result of this acquisition of shares, the Company plans to make Crest and Okinawa Break Co., Ltd., 100% of
whose shares are owned by Crest, a subject of consolidation from March 31, 2024.

(1) Outline of business combination
1) Name of company to be acquired and its business description
Name of acquired business Crest Co., Ltd.
Business description
Management of car parking and bicycle parking lots, etc.
2) Main reason for business combination
As a manufacturer of DAM commercial karaoke equipment, the Company conducts sales activities
rooted in local communities from our sales offices located throughout Japan.
In this environment, leveraging its karaoke sales offices nationwide and the personal networks and otheradvantages that it has built up in its sales activities in various regions, the Group is promoting a parking
business with the name, “The Park,” with the aim of making it the third pillar of the Group’s business after
the commercial karaoke business and karaoke cabin and restaurant business. It has expanded this business toa scale of approximately 2,400 parking facilities and 30,000 parking spots (as of December 31, 2023).
Crest Co., Ltd. (including Okinawa Break Co., Ltd.) operates approximately 700 coin-operating parking
facilities with 6,000 parking spots (as of December 31, 2023) in major locations such as Tokyo, Osaka,
Nagoya, and Okinawa. By acquiring the shares of this company, not only will the Company significantly
increase its share in the major city-center locations, which has been a challenge for the Company, but it will
also acquire the expertise in location development in city centers that CREST has cultivated for over 20 years
since its establishment, which the Company believes will lead to further growth in the Company’s parking
business.
3) Date of business combination
February 26, 2024 (to be confirmed)
4) Legal form of business combination
Acquisition of shares5) Name of the company after combination
No change
6) Percentage of voting rights acquired
100%7) Main grounds leading to the decision on the acquiring company
The Company will acquire the shares with cash as the consideration.
(2) Acquisition cost and consideration of the acquired company by item
Consideration for acquisition

Cash and deposits

Acquisition cost

5,250 million yen
5,250 million yen(3) Main acquisition-related costs and their amounts
Not finalized at this time.
(4) Goodwill value generated, cause of generation, amortization method, and amortization period
Not finalized at this time.
(5) Assets received and liabilities assumed on the date of business combination and main breakdown of same
Not finalized at this time.

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