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 Second Quarter Ended
September 30, 2023 [JGAAP]
November 9, 2023

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: November 13, 2023
Start Date for Dividend Payment: December 5, 2023
Availability of Supplementary Briefing Material on Quarterly Financial Results: Available
Schedule of Quarterly Financial Results Briefing Session: None
(Amounts below one million yen are truncated.)

1. Consolidated Performance for the Six Months Ended September 30, 2023 (From April 1, 2023, toSeptember 30, 2023)(1) Consolidated operating results(Percentage figures indicate increase/decrease from a year earlier.)
Net sales
Six months ended
September 30, 2023
Six months ended
September 30, 2022

Operating profit

Ordinary profit

Millions of yen%

Millions of yen%

Millions of yen%

71,256

17.4

9,377

71.5

9,758

69.0

60,671

53.5

5,469

―

5,773

―

Profit attributable toowners of parent
Millions of yen

Basic earnings per share

Diluted earnings per share

Yen

Yen

%

Six months ended
6,576
9.8
60.91
60.79
September 30, 2023
Six months ended
5,990
54.86
54.78
―
September 30, 2022
(Notes) 1. Comprehensive income:Six months ended September 30, 2023: 7,029 million yen 13.2%
Six months ended September 30, 2022: 6,208 million yen ― %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 September 30, 2023
As of March 31, 2023

Net assets

Equity ratio

Millions of yen

Millions of yen%

174,219
188,623

105,860
107,915

59.9
56.4

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DAIICHIKOSHO

CO.,

LTD.

(Reference) Shareholders’ equity:
As of September 30, 2023: 104,352 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
113.00――Year 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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DAIICHIKOSHO

CO.,

LTD.

*Notes(1) Significant changes in subsidiaries during the period under review (changes to specific subsidiaries resulting inchanges in scope of consolidation): None
(2) 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)
September 30, 2023
shares March 31, 2023
shares2) Number of treasury shares
As of
2,613,807 As of
282,604
3) Average number of shares
September 30, 2023
shares March 31, 2023
sharesduring the period
Six months ended
107,970,535 Six months ended
109,185,863
September 30, 2023
shares September 30, 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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DAIICHIKOSHO

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 Cash Flows .......................................................................................................................... 7(4) 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) Quarterly Consolidated Statements of Cash Flows ................................................................................... 12(4) Notes to Quarterly Consolidated Financial Statements ............................................................................. 14(Notes on Going Concern Assumption) ................................................................................................. 14(Notes in Case of Significant Changes in Shareholders’ Equity) ........................................................... 14(Segment Information) ........................................................................................................................... 14(Quarterly Consolidated Statements of Income) .................................................................................... 15

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DAIICHIKOSHO

CO.,

LTD.

1. Qualitative Information on Quarterly Performance(1) Explanation of Operating Results
In the six months ended September 30, 2023 (the “six 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 six months under review, net
sales amounted to 71,256 million yen (up 17.4% year on year), a record high for the first six months, operating profit was
9,377 million yen (up 71.5% year on year), and ordinary profit was 9,758 million yen (up 69.0% year on year). Profit
attributable to owners of parent amounted to 6,576 million yen (up 9.8% year on year), as subsidy income of 2,868 million
yen posted in the previous corresponding period was absent in the six months under review.
(Millions of yen)

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

Six months ended
September 30, 2022
60,671
5,469
5,773
5,990

Six months ended
September 30, 2023
71,256
9,377
9,758
6,576

Year-on-yearchange10,584
3,908
3,985
585

% change
17.4%
71.5%
69.0%
9.8%

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 originally planned
since its release.
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 6.2% 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 7.0% 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

Six months ended
September 30, 2022
28,716
7,472

Six months ended
September 30, 2023
30,483
6,947

Year-on-year change% change

1,766
(525)

6.2%
(7.0)%(Karaoke cabin and restaurant business)
In the karaoke cabin and restaurant business, we opened three karaoke cabins and five restaurants and closed two
karaoke cabins, and nine restaurants due to the integration of food and beverage complexes type as well as change ofbusiness type, and we operated 509 karaoke cabins and 167 restaurants as of the end of the six 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 six months under review. During the six months under review, existing karaoke cabin sales recovered to alevel approximately 10% lower than before the COVID-19 pandemic and restaurants to a level approximately 10% higher,
for an approximately 30% increase for karaoke cabins and approximately 40% 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 35.2% year on year, and operating profit amounted to 2,680 million yen.
(Millions of yen)

Net sales
Operating profit

Six months ended
September 30, 2022
22,702(1,671)

Six months ended
September 30, 2023
30,685
2,680

Year-on-year change% change

7,983
4,352

35.2%
―

(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 decreased by 1.6% year on year and operating profit increased by 58.0% year on year.
(Millions of yen)

Net sales
Operating profit

Six months ended
September 30, 2022
3,221
98

Six months ended
September 30, 2023
3,169
156

Year-on-year change% change(51)
57(1.6)%
58.0%(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 more than 2,300 parking facilities and 28,000 parking spots as of the end of thesix 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 14.7% year on year owing to factors such as an increase in revenue from the parking
business, and operating profit increased by 0.9% year on year.
(Millions of yen)

Net sales
Operating profit

Six months ended
September 30, 2022
6,030
788

Six months ended
September 30, 2023
6,917
795

6

Year-on-year change886
7% change
14.7%
0.9%

DAIICHIKOSHO

CO.,

LTD.

(2) Explanation of Financial Position
Total assets at the end of the six months under review decreased by 14,403 million yen from the end of the previous
fiscal year to 174,219 million yen.
Major changes from the previous fiscal year were a decrease in cash and deposits by 19,613 million yen, and anincrease in prepaid expenses included in “other” by 1,324 million yen, in current assets.
In non-current assets, karaoke equipment for rental and karaoke cabin and restaurant facilities increased by 1,785
million yen and 1,175 million yen, respectively.
Liabilities decreased by 12,349 million yen from the end of the previous fiscal year to 68,358 million yen.
Major changes from the previous fiscal year were decreases in notes and accounts payable – trade and accounts payable– other included in “other” by 1,374 million yen and 895 million yen, respectively, in current liabilities.
In non-current liabilities, long-term borrowings decreased by 9,966 million yen.
Net assets decreased by 2,054 million yen from the end of the previous fiscal year to 105,860 million yen.
The decrease is primarily attributable to an increase in retained earnings of 6,576 million yen due to profit attributableto owners of parent, a decrease in retained earnings of 3,111 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 Cash Flows
Cash and cash equivalents (hereinafter referred to as “funds”) at the end of the six months under review decreased by
19,613 million yen from the end of the previous fiscal year to 51,810 million yen.
The following is the explanation of cash flows in the six months under review and their contributing factors.
(Cash Flows from Operating Activities)
Funds provided by operating activities were 9,446 million yen, a decrease of 1,920 million yen compared to theprevious corresponding period, mainly due to profit before income taxes of 9,631 million yen, depreciation of 5,830
million yen, decrease in trade payables of 1,386 million yen, decrease in accounts payable – other of 644 million yen,
and income taxes paid of 2,897 million yen.
(Cash Flows from Investing Activities)
Funds used in investing activities increased by 3,774 million yen year on year to 9,676 million yen, mainly due topurchase of property, plant and equipment of 7,075 million yen, purchase of intangible assets of 1,560 million yen, andpayments for acquisition of video licenses of 1,003 million yen.
(Cash Flows from Financing Activities)
Funds used in financing activities increased by 15,950 million yen year on year to 19,450 million yen, mainly due torepayments of long-term borrowings of 10,421 million yen, dividends paid of 3,112 million yen, and purchase oftreasury shares of 6,000 million yen.

(4) 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.

7

DAIICHIKOSHO

CO.,

LTD.

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

FY2022Current Second quarter(As of March 31, 2023) (As of September 30, 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)
93,42952,198
5,483
10,917
6,954(353)
75,2006,306
9,192
40,2186,574
62,292

8,092
10,367
40,2187,127
65,806

606
6,056
6,663

569
5,720
6,289

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

5,502
14,4587,100(138)
26,92399,019174,219

DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

FY2022Current Second quarter(As of March 31, 2023) (As of September 30, 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
12,56435,2883,580
13,146
3,332
1,654
11,35033,064

31,135

21,168

1,113

646

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

8,217
2,010
3,251
35,29468,35812,3504,211
89,885(571)
105,876

12,3504,211
93,350(6,571)
103,340

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

1,409
(733)
178
157
1,011
326
1,181
105,860
174,219

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

Six months ended
September 30, 2022
(From April 1, 2022, toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023, toSeptember 30, 2023)

60,671
39,771
20,89915,4305,469

71,25645,38125,874
16,497
9,377

9
94
93
－
350
548

12
48
98
11
371
541

87
40
35
80
243
5,773

70
－
4
84
159
9,758

3
112
2,868
2,983

2
－
－
2

26
18
44
8,712
1,807
895
2,703
6,009
19
5,990

93
35
129
9,631
3,179
(139)
3,039
6,592
16
6,576

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

Six months ended
September 30, 2022
(From April 1, 2022, toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023, toSeptember 30, 2023)

6,009

6,592

136
45
17
198
6,208

361
78
(3)
437
7,029

6,189

7,013

19

16

DAIICHIKOSHO

CO.,

LTD.

(3) Quarterly Consolidated Statements of Cash Flows(Millions of yen)

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

12

Six months ended
September 30, 2022
(From April 1, 2022, toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023, toSeptember 30, 2023)

8,712
5,079
54
18

9,631
5,830
37
35

33

(466)

(78)
87
(33)
23
(2,868)
(112)
(566)
(491)
27
(242)
326
548
(352)
10,168
78
(88)
3,036
(1,827)
11,367

(82)
70
(66)
91
－
－
(77)
823
38
(251)
(1,386)(644)(1,248)12,33581(72)－(2,897)
9,446

(10)
10
(3,527)
7(1,615)
(536)
－

(10)
10
(7,075)
3(1,560)(1,003)
(73)

143

－

(16)
(106)
106
(472)
206
(89)
(5,901)

－
(30)
117
(131)
101
(23)
(9,676)DAIICHIKOSHO

CO.,

LTD.

(Millions of yen)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Purchase of treasury shares
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

13

Six months ended
September 30, 2022
(From April 1, 2022, toSeptember 30, 2022)

Six months ended
September 30, 2023
(From April 1, 2023, toSeptember 30, 2023)

25
130
(537)
(3,111)(0)(7)(3,500)33
1,998
68,12570,124(309)
400(10,421)(3,112)(6,000)(7)(19,450)66(19,613)71,42351,810DAIICHIKOSHO

CO.,

LTD.

(4) 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 six months ended September 30, 2023 and treasury shares amounted to 6,571 million yen at the end of the six months
under review.

(Segment Information)[Segment information]
Six months ended September 30, 2022 (From April 1, 2022, to September 30, 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:

Commercial
karaokeKaraokecabin and
restaurantMusic
softwareSubtotal

Other(Note 1)

Total

28,71622,702

3,221

54,6406,030

60,671

7,472(1,671)

98

5,899

788

6,688

Adjusted
amount(Note 2)

Postedamount to theconsolidated
quarterlystatements ofincome60,671(1,219)5,469

1. The category “Other” comprises a business segment not attributable to reportable segments, including
parking, real estate leasing and BGM broadcasting businesses.
2. The (1,219) 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.

Six months ended September 30, 2023 (From April 1, 2023, to September 30, 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)

30,48330,685

3,169

64,338

6,917

71,256－

71,256

6,947

2,680

156

9,784

795

10,580(1,202)

9,377

Total

1. The category “Other” comprises a business segment not attributable to reportable segments, including
parking, real estate leasing and BGM broadcasting businesses.
2. The (1,202) million yen adjustment posted to segment profit is primarily composed of general andadministrative expenses incurred by the administrative department at the head office that are not
attributable to any particular reportable segment.

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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DAIICHIKOSHO

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.

15