FY2022

May 15, 2023

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on
Financial Results for the Year Ended March 31, 2023

Overview of Financial Results for the Year Ended March 31, 2023:
Contents

1. Overview of Financial Results for the Year
Ended March 31, 2023
p.2-14FY2022

2. Outlook of Financial Results for the YearEnding March 31, 2024 p.15-18- Summary- Full-year consolidated performance forecasts- Business environment- Factors for change of net sales / operating profit- Statements of income- Initiatives by segment

Performance comparison with FY2021- Shareholder returns (Dividend forecasts)

Factors for change of net sales/operating profit
Extraordinary income and losses- Quarterly sales performancep.19-24- The new Group corporate message- 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

3. References- Primary product lineup- Introducing new DAM products- Karaoke and restaurant brand list
- Music software: Musicians- Other: Key segments

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

1

FY2022

Overview of Financial Results
for the Year Ended March 31, 2023

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

Overview of Financial Results for the Year Ended March 31, 2023:
Summary

FY2022≪Year Ended March 31, 2023 (FY2022)≫
 Despite the lingering impact of COVID-19, the business environment for the current period improved significantly
compared to the previous period, when a state of emergency was declared twice.
 (Commercial karaoke)
Both the nightlife and the karaoke cabin markets were in a recovery trend due to the resumption of operation and anincrease in new store openings.
The number of DAM systems in operation at the end of the current period increased by 2% from the end of theprevious period.
 (Karaoke cabins and restaurants)
There were no business restrictions, such as requests for reduced operating hours, during the current period,
however with the impact of the seventh and eighth waves on attracting customers, net sales at existing stores were
down approximately 20% compared to before COVID-19 (up 115% year on year), showing a recovery trend.
 2.9 billion yen from the employment adjustment subsidies and subsidies for reduced business hours, etc.
(corresponding to the previous period) was posted as extraordinary income, however 3.1 billion yen from store
equipment impairment losses and losses due to changes in estimates of asset retirement obligations was posted as
extraordinary losses.
 Consolidated net sales increased by 35.2% year on year and improved profits significantly.
(Year-on-year comparison) Operating profit: +13.2 billion yen; ordinary profit: +12.7 billion yen; profit: +3.1 billion yen
 Although a decrease in profit is expected in the commercial karaoke business in the next period (the fiscal year
ending March 31, 2024) due to up-front investment in karaoke rental equipment and contents, overall sales and profit
are forecast to increase due to factors such as recovery in the karaoke cabins and restaurants business due to afurther reduction in the impact of COVID-19.
Net sales: 141.0 billion yen Operating profit: 15.0 billion yen Ordinary profit 16.0 billion yen
Profit: 10,700 million yen

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

2

Overview of Financial Results for the Year Ended March 31, 2023:
Business environment

FY2022Previous Period<<Business environment >>Year ended March 31, 2022
Apr.
Quasistate

May

Jun.

Declaration ofstate of emergency (3)Jul.

Quasistate

Aug.

Sep.

Declaration ofstate of emergency (4)

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Quasi-state of
emergency

Reboundprevention

Current Period

Year ended March 31, 2023
Apr.

May

Jun.

Jul.

Number of new COVID-19 cases(Tokyo)Aug.

Seventh
wave

Sep.

Oct.

Nov.

Dec.

Jan.

Feb.

Mar.

Eighthwave

Recovery stalled temporarily during the seventh and eighth waves of COVID-19 when infections were on the rise,
however there were no business restrictions, such as declaration of a state of emergency, during the current period.

There was significant improvement in the business environment compared to the previous period,and conditions continue to return to normal.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

3

Overview of Financial Results for the Year Ended March 31, 2023:
Performance comparison with FY2021

FY2022(Millions of yen)

FY2021

Net sales

FY2022(vs. sales ratio)(vs. sales ratio)

Change% change

94,787(100.0%)128,156(100.0%)+33,369+35.2％

Operating Profit

(289)

-

12,954（10.1%）+13,244-

Ordinary Profit

888（0.9%）

13,601（10.6％）+12,712-5,196（5.5%）

8,320（6.5％）+3,124+60.1％

Profit(Millions of yen)

Net sales

150,000

Operating Profit
12,95414,000128,156

12,000Ordinary Profit
13,601

14,000

Profit10,000

8,320

12,0008,000

100,000

10,00094,787

10,000

8,000

6,000

8,000

5,196

6,000
6,000
4,000

2,000

2,000
2,000

0
0

(2,000)

FY2021

１

4,000

4,000

50,000

FY2022(289)
FY2021888

0

FY20220

FY2021

FY2022

FY2021DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

FY2022

4

Overview of Financial Results for the Year Ended March 31, 2023:
Factors for change of net sales / operating profit
Net sales

+27.1

+0.4

FY2022

+1.2

128.1

Other

FY2022
Results

+0.5

12.9

Other

FY2022
Results

Unit: Billions of yen

94.7

FY2021Results+4.5

Commercial
karaokeOperating Profit

+11.2

(0.2)
FY2021Results１

Karaoke cabins Music softwareand restaurants

+0.1

+1.4
Commercial
karaokeKaraoke cabins Music softwareand restaurants(Including corporate
expenses)

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

5

Overview of Financial Results for the Year Ended March 31, 2023:
Extraordinary income and losses

FY2022[Extraordinary income and losses]◆ Extraordinary income 3,121 million yen (15,311 million yen for FY2021)
Main reason- Subsidy income

2,928 million yen (15,206 million yen for FY2021)(Various benefits, including employment adjustment subsidies and subsidies for shorter
business hours for the previous period)◆ Extraordinary losses 3,385 million yen (8,505 million yen for FY2021)
Main reason- Impairment losses

3,130 million yen (1,862 million yen for FY2021)(Impairment losses of karaoke cabin and restaurant facilities and impairment losses due tochanges in estimates of asset retirement obligations, etc. )* In addition to the above, a loss on COVID-19 of 6,452 million yen was posted in the previous
period.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

6

Overview of Financial Results for the Year Ended March 31, 2023:
Quarterly sales performance

FY2022Significant COVID-19
impact(Millions of yen)

Recovery
period45,00040,00035,00030,00025,00020,00015,00010,000
5,000
0
1Ｑ

2Ｑ

3Ｑ

2018年度FY2018

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2019年度FY2019

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2020年度FY2020

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2021年度FY2021

2Ｑ

3Ｑ

4Ｑ

2022年度FY2022

その他事業
Commercial業務用カラオケ事業
karaokeKaraokeカラオケ・飲食店舗事業
cabins and restaurants 音楽ソフト事業
Music software
Other businesses

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

7

Overview of Financial Results for the Year Ended March 31, 2023:
Performance by segment(Millions of yen)

FY2022

Commercial karaoke
業務用カラオケ事業

20,00018,00016,00014,00012,000Net sales

売上高
Operating
営業利益
profit10,000
8,000
6,000
4,000
2,000
0
1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2018年度

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2019年度FY2018

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2020年度FY2019

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2021年度FY2020

2Ｑ

3Ｑ

4Ｑ

2022年度FY2021

FY2022

Karaokecabins and restaurants
カラオケ・飲食店舗事業

20,00015,00010,000Net sales

5,000

売上高
Operating
営業利益
profit0-5,000
1Ｑ

2Ｑ

3Ｑ

2018年度FY2018

１

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2019年度FY2019

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2020年度FY2020

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2021年度FY2021

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

2022年度FY2022DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

8

Overview of Financial Results for the Year Ended March 31, 2023:
Performance by segment(Millions of yen)

FY2022

音楽ソフト事業
Music software

2,500
2,000
1,500

Net sales
売上高
Operating
営業利益
profit

1,000
500
0
-500
1Ｑ

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2018年度

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2019年度FY2018

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2020年度FY2019

2Ｑ

3Ｑ

4Ｑ

1Ｑ

2021年度FY2020

2Ｑ

3Ｑ

4Ｑ

2022年度FY2021

FY2022

その他事業
Otherbusinesses

3,500
3,000
2,500
2,000

Net sales
売上高
Operating
営業利益
profit

1,500
1,000
500
0
1Ｑ

2Ｑ

3Ｑ

2018年度FY2018

１

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2019年度FY2019

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2020年度FY2020

4Ｑ

1Ｑ

2Ｑ

3Ｑ

2021年度FY2021

4Ｑ

1Ｑ

2Ｑ

3Ｑ

4Ｑ

2022年度FY2022DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

9

Overview of Financial Results for the Year Ended March 31, 2023:
Commercial karaoke

FY2022

Commercial karaoke(Millions of yen)
FY2021(vs. sales ratio)

FY2022(vs. sales ratio)

Change% change

Net sales

53,188(100.0%)57,731(100.0%)+4,542+8.5%

Operating profit

12,186(22.9%)

13,593(23.5%)+1,407+11.6%* In the same period of the previous fiscal year, fixed costs of 599 million yen related to the exemption measures(none for the current period) were transferred to “loss on COVID-19.”

Factors for change of segment profit
Removal of
extraordinary
loss transfers*[Notes]Increase in
sales

Increase in costand SG&A

 Due to the reopening of customer stores and an increase in
new store openings following the lifting of various
governmental requests, the business environment is trending
toward recovery, centered on stores operating at night, suchas snack bars, which are our main market.

+4,542(2,536)(599)
12,186

13,593

 Establish a sales structure that also utilizes websites- “Karaoke no Madoguchi (Karaoke Sales Portal)”:Supporting the introduction of karaoke equipment- “Yorumise Navi (Searchable Nightlife Real Estate
Directory)”- Online events for the seniors’ market such as nursing
homes We strived to improve DAM products by expanding video
contents such as live videos, animated videos and music
videos, including a new content "Liview!”

FY2021

FY2022* This is due to the absence of an amount transferred from the cost of sales
and SG&A expenses to ”loss on COVID-19” for the current period, which was
599 million yen in the previous period.

１

 Net sales and operating profit increased due to a 2%
increase in the number of units in operation compared to theend of the previous period.

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

10

Overview of Financial Results for the Year Ended March 31, 2023:
Karaoke cabins and restaurants

FY2022

Karaoke cabins and restaurants(Millions of yen)

FY2021(vs. sales ratio)

FY2022(vs. sales ratio)

Change% change

Net sales

24,402(100.0%)51,584(100.0%)+27,181+111.4%

Operating profit(11,299)

-

(59)

-

+11,240-* Fixed costs of 5,820 million yen for karaoke cabins and restaurants during the period they were closed were transferred to "loss on
COVID-19" in the previous period (no amount for current period).

Factors for change of segment profit
Removal of
extraordinary
loss transfers*[Notes]Increase in Increase in costsales
and SG&A

 Karaoke: Open 15, Close 10, Number of karaoke shops at theperiod-end 508
Restaurant: Open 14, Close 18, Number of restaurants at theperiod-end 171+27,181

FY2021

FY2022(10,121)(59)(11,299)

 For Big Echo, in addition to installing "LIVE DAM Ai" (ourmost premium karaoke model) in all rooms at 44 cabins, we
focused on attracting more young customers through usingsocial media and the introduction of “Saikyo Gakuwari (BestStudent Discount)”.

(5,820)* This is due to the absence of an amount transferred from the cost of sales
and SG&A expenses to ”loss on COVID-19” for the current period, which was
5,820 million yen in the previous period.

１

 In addition to the continued impact of COVID-19 on somebusiness locations and late-night hours, the impact of theseventh and eighth waves led to a temporary decline,
however sales at existing stores were down approximately
20% compared to before COVID-19 (up 115% year-on-year),showing a recovery trend.

 We strove to strengthen our restaurants business, forinstance by creating a new business type “Ginten,” locationsin Ginza Corridor Street, Tokyo and Meieki 3-chome, Nagoya.

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

11

Overview of Financial Results for the Year Ended March 31, 2023:
Music software and other businesses

FY2022

Music software(Millions of yen)(vs. sales
ratio)FY2021(vs. sales
ratio)FY2022

Change% change

Net sales

6,029(100.0%)6,430(100.0%)

+400

+6.6%

Operating profit

79(1.3%)

228(3.5%)+148+186.0%[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 also performed well.

Other businesses(Millions of yen)(vs. sales
ratio)FY2021(vs. sales
ratio)FY2022

Change% change

Net sales

11,166(100.0%)12,411(100.0%)+1,244+11.1%

Operating profit

1,006(9.0%)

1,581(12.7%)+574+57.0%[Notes] The parking lot business, which operates under brand name "The Park," performed well with a total of approximately 2,000
facilities and 26,000 parking spaces at the end of the current period.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

12

Overview of Financial Results for the Year Ended March 31, 2023:
Consolidated balance sheets

FY2022(Millions of yen)

As of March 31,2022

As of March 31,
2023

180,389

188,623+8,233Current
assets84,27793,429+9,152

Increase in cash and deposits andinventories

Non-current
assets96,112

95,193(919)

Decrease in karaoke cabin andrestaurant facilities

75,22980,707+5,478AssetsLiabilities

Notes

Current
liabilities

21,65835,288+13,630

Increase in short-term borrowings andaccounts payable – trade, accounts
payable – otherNon-current
liabilities

53,57045,419(8,151)

Decrease in long-term borrowings

105,160

107,915+2,755

Net assets

１

ChangeDAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

13

Overview of Financial Results for the Year Ended March 31, 2023:
Consolidated management indicators

FY2022

Profitability
FY2021

FY2022

ChangeOperating profit to net sales (%)(0.3)％

10.1％+10.4％

Basic earnings per share (yen)47.61 yen

76.21 yen

+28.60 yen

Soundness
As of March 31, 2022

As of March 31, 2023

ChangeNet assets (Millions of yen)

105,160

107,915+2,755Equity ratio (%)

57.4％

56.4％

(1.0)％Cash flows(Millions of yen)

FY2021

ChangeCash flows from operating
activities

18,16524,869+6,703

Cash flows from investing
activities(9,297)(12,104)(2,807)

Cash flows from financing
activities(8,487)(9,493)(1,005)

445

3,298

+2,853

Cash and cash equivalents
at end of period

68,12571,423+3,298

Free cash flows

8,868

12,765+3,896

Net increase (decrease) in cash andcash equivalents

１

FY2022DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

14

FY2022

Outlook of Financial Results
for the Year Ending March 31, 2024

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

Outlook of Financial Results for the Year Ending March 31, 2024:
Full-year consolidated performance forecasts

FY2022(Millions of yen)

FY2021(year ended March 31, 2022)

FY2022(year ended March 31, 2023)

FY2023 (forecast)(year ending March 31, 2024)

Net sales

94,787(100.0%)128,156(100.0%)141,000(100.0%)Operating profit

(289)

-

12,95410.1%

15,00010.6%

Ordinary profit

888

0.9%

13,601

10.6%

16,000

11.3%

Profit

5,196

5.5%

8,320

6.5%

10,700

7.6%

Earnings Per Share（EPS）*1

47.61

Net sales

Operating profit
141,000

150,000

76.21

20,000Ordinary profit

12,954
13,30015,00015,00094,787

Profit15,00020,000126,500
128,156

100,000

98.00

16,00010,70013,601
14,10015,000

8,320
9,500

10,00010,00010,000

5,196

5,000

5,000

50,000
5,000

0

(289)
(289)
0

(5,000)

FY2021 FY2022 FY2023
Results Results Forecast

888
0

FY2021 FY2022 FY2023
Results Results Forecast

0

FY2021 FY2022 FY2023
Results Results Forecast

FY2021 FY2022 FY2023
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, 2023

15

Outlook of Financial Results for the Year Ending March 31, 2024:
Factors for change of net sales and operating profit
Net sales

+8.9

+0.5

FY2022

+0.9

141.0

Other

FY2023
Forecast

Unit: Billions of yen

+2.4
128.1

FY2022
Results

Commercial
karaokeKaraoke cabins
and restaurants

Music software+4.7

Operating Profit

15.0
(0.0)

12.9

(0.5)

(2.0)
FY2022
Results

Commercial
karaokeKaraoke cabins
and restaurants

Music software

Other(Including corporate
expenses)

FY2023
Forecast* 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, 2023

16

Outlook of Financial Results for the Year Ending March 31, 2024:
Initiatives by segment

FY2022

Commercial karaoke business• Work to increase the number of DAM systems in operation through a sales structure that utilizes local-based face-to-face sales as wellas websites.
• Pursue investment into replacement of rental equipment assets, with a focus on LIVE DAM AiR which was released for sale in April, as
well as investment into karaoke contents such as soundtracks and video. Strengthen stable profit base and aim to further increase valueof DAM brand as the number one karaoke brand.
• Contribute to increasing healthy life expectancies and reducing workloads for nursing home employees through promotion of FREE
DAM LIFE, which was released for sale in October of last year, on the seniors’ market (nursing homes, etc.).
⇒ Despite increased sales due to factors such as an increase in wholesaling and in the number of DAM systems in operation, profit isforecast to decrease due to increased cost of sales and SG&A expenses due to upfront investments to strengthen profit base.

Karaoke cabins and restaurants business• Although customer levels are expected to recover as the COVID-19 pandemic comes to an end, expenses such as utility costs are
expected to increase.
• Work to establish lean earning models and strengthen competitiveness of locations through efforts such as efficient operations(collaboration with darts businesses) and scrap and build.
• For Big Echo, which is approaching its 35th anniversary, appeal to customers with the joy of karaoke, and stimulate the desire to sing,through a variety of campaigns such as collaboration with artists.
⇒ Although results are not expected to reach pre-COVIID-19 levels, sales and profits are forecast to increase due to recovery at existing
stores.

Music software business• Work to discover new artists and create hit songs while also working to construct an earnings models that is not dependent on major hits.
⇒ Sales and profits are forecast to generally be in line with the year ended March 31, 2023.

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.
⇒ Although sales are forecast to increase due to increased sales in the parking business, profits are forecast to decrease due to factors
such as increased SG&A expenses from efforts to spread brand awareness for The Park.

１

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

17

Shareholder returns

FY2022

Basic policy on profit distribution■ Dividend policy- Actively return profits to shareholders in line with consolidated business results, taking into consideration internal reserves for future
investments and other plans.
- Pay dividends with a target consolidated payout ratio of at least 30%.
- Repurchase the shares at appropriate timings to improve capital efficiency.

■ Dividend forecast- Taking into account the future business environment, and in light of the stock split, we decided to effectively increase the dividend
forecast for the next fiscal year (FY2023), in comparison to the current fiscal year, at 57 yen (annual).
FY2022* (Year ended March 31, 2023)

Dividends per share

FY2023 Forecast* (Year ending March 31, 2024)

InterimYear-end

AnnualInterimYear-end

Annual56 yen57 yen113 yen

28 yen(forecast)

29 yen(forecast)

57 yen(forecast)

Payout ratio

74.1%

58.2%

* Shares were split on April 1, 2023 at a ratio of 2 for 1 common share. Actual dividends amounts before stock split are listed for the fiscal year ended March
31, 2023.

■ Repurchasing of shares
November 2019

toJanuary 2020

Acquired 273,400 shares(1,499 million yen)March 2020

toJune 2020

Acquired 500,000 shares(1,587 million yen)August 2020

toMarch 2021

Acquired 1,379,800 shares(4,999 million yen)

May 2021

Cancelled 2,500,000 shares

April 1, 2023

Stock split at a ratio of 2 for 1 common share.

April 2023

１

toSeptember 2023

Plan to acquire 4,000,000 shares(6,000 million yen)

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

18

FY2022

References

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

References: The new Group corporate message

FY2022The new Group corporate message is “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 the newly opened special
website, we introduce the delightful effects ofsinging on the mind and body, the power ofsongs and music, 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, 2023

19

References (Commercial karaoke): Primary product lineup
Released for sale April 18, 2023

Released for sale October 4, 2022

LIVE 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

Released for sale April 18, 2023

(WITM-500P/W)

SmartDAM AiR(TM30R)
Easier to use! More enjoyable!
More intuitive confirmation ofreserved songs/manipulation of songs settings● 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.

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FY2022

Come with "DAM button" that changes
user's voice to a more singable soundquality● 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, 2023

20

References (Commercial karaoke):

FY2022Introducing new DAM products (LIVE DAM AiR)Sing with No. 1.

Live hall reverb + Excite Mode
Call & response

Arena!

Sing together, with “minna de utatte!”(everyone together!) ♪
Say “danshi...!”(now the boys...!) ♪
Say “arena!” ♪
Say “hakushu...!”(applause...!) ♪

Display song selections
When search criteria yield
multiple songs, such as
when searching by singer
name only or criteria suchas “1992 rankings,” users
can select from a list.

Which number would
you like?
Tooku Haruka
Short Films
Ibara no michi
ANNY PUMP

OK,
DAM!
OK, DAM!
OsusumekaketeOsusume kakete(Play thesong.)(Play
therecommended
recommended
song.)
Ichiban!
(Numberone!)

Naitemo iindana…
Sindy

Compatible withforeign languages
Compatible with native
speechin foreign
languages,
When search
criteriayield
multiple songs,
suchKorean
as whenincluding
English,searchingby singer name onlyandChinese.
or criteria such as “1992rankings,” users can selectfrom a list.

Moshi-moshi DAM!
(Hey DAM!)

Shout phrases into the mike during
preludes and interludes to get“Danshi!”
responses such as applause or cheering. (Now the boys!)“Hakushu!”(Applause!)“Joshi!”(Now the girls!)

Let the audience join in
Create spectacular auditory
performances resembling a chorusof thousands.

“Minna de utatte!”(Everyone together!)

Impression videos that are fun to sing to
or to watch

Korokke’s Impression Park
Japanese television personality “Korokke” is the king of parody
impressions, and users can enjoy medleys of some of his biggest
hits. The features includes guide vocals using Korokke’s actual voice,which can be turned on or off, letting users enjoy watching andlistening, or letting them become Korokke and sing for themselves.
On the special Denmoku page where impression characters appear,users can find content such as an impressions picture matchinggame that unlocks a special impressions video when cleared, or
curated playlists of impression medley compositions.

■ Special LIVE DAM AiR site： https://www.clubdam.com/damlineup/livedam_air/

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DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

21

Reference (karaoke cabins / restaurant business):
Karaoke and restaurant brand list
Karaoke Shops
Big Echo

Karaoke Mac

Karaoke CLUB DAM

Mega Big

Restaurants/Bars
Restaurants / pubs

Bars

RakuzoMinatoichiya

Senyaichiya

Umekono ie

Kyomachi shizuku

KitchenAmatsuBistro ya

Jibundoki

Seseragi wokikinagara

Tokachi Ishikari
Hakodate

Sushi ya
Harenohi

RockTokyo Nicks

Bars

CELTS

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Amusement bars

HIGHBALL BAR

J’s BarREGALO

Darts One

GintenRestaurants / cafes

MARUNOUCHI
BASE

Ginza Coffee

Mochinokipasta

Time is CurryDAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

Ichidan22

Reference (Music software): Musicians◆ Enka, Pop◆ Enka, Pop

Tetsuji Kimura

Kaori Mizumori◆ J-pop◆ J-pop

BERRY GOODMAN

chuLa

DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

FY202223

Reference (Other business segments): Key segments

FY2022

Parking Lot Business
Proposing land utilization and creating more value

Armed with the trust we have built up with our customers
nationwide as a leading company in the karaoke industry, we aredeveloping our metered parking business under the name of "The
Park," proposing effective use of land that contributes to local
communities which satisfy our customers with safety and security.
We provide a thorough support, from establishment of a new
facility to follow-up service. We are promoting this businessnationwide to make it a new pillar of our earnings, and as of March
31, 2023 have expanded to a scale of 2,000 facilities and 26,000
parking spaces.
As of mid-April we have begun spreading awareness of The Park
as an attractive option to make use of available land throughtelevision commercials (focused on regionals cities) that feature
Kenichi Mikawa as a fictional Enka singer named “Tochio Katsuyo”(Tochio Katsuyo is a homonym of the Japanese for ‘land use’).

(Facilities)(Parking spaces)

Mascot character
Tochio Katsuyo

Online Business

BGM Broadcasting Business[Commercial use]
BGM service utilizing dedicated mobile 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.

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

Internet streaming karaoke. A monthly subscription
service that allows users to enjoy karaoke with video
and lyrics with their computer.

[Home use]
Music channel which comes with "Sky Perfect
TV! Premium Service" or "Sky Perfect TV!
Premium Service Hikari."

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DAIICHIKOSHO CO., LTD.
Supplementary Briefing Material on Financial Results for the Year Ended March 31, 2023

24

FY2022

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, 2023