■ Information for Shareholders
Business term

From April 1 of each year to March 31 of the following year

Annual generalshareholders’ meeting

June of each year

Record date for above

Annual general shareholders’ meeting: March 31
Other occasions: Other record date separately
determined as necessary upon a prior public notice

Record date of shareholders toreceive dividends from surplus

Year-end dividend: March 31
Interim dividend: September 30

Number of sharesconstituting one unit

100 shares

Newspaper in which
public notices are inserted

The Nikkei

Transfer Agent and accountmanagement institution forthe special account

Mitsubishi UFJ Trust and Banking Corporation

Contact of above(postal address andtelephone number)

7-10-11 Higashisuna, Koto-ku, Tokyo 137-8081
Mitsubishi UFJ Trust and Banking Corporation,
Corporate Agency Division
Telephone: 0120-232-711 (toll-free in Japan only)

Securities code

7458

Shareholder Special Beneﬁts
Shareholders recorded in the ﬁnal shareholder registry on March
31, 2013 as holding 100 or more shares will be granted special
beneﬁts coupons according to the number of shares held.

Number of shares held

Details of beneﬁts

Vol.35 April 1, 2012 to March 31, 2013

Business Report for the 38th Term

Issued semiannually
Special Beneﬁt Coupon(＊1)

Exchange with CD(s)(＊2)

100 to 999 shares

Ten sheets of 500-yen coupon

1 CD

1,000 shares or more

25 sheets of 500-yen coupon

2 CDs

（＊1）
The coupons can be used at businesses operated by the Company including Big
Echo karaoke shops, and Rakuzo , Umeko No Ie , Bisutoroya and otherrestaurants.
（＊2）
CD albums are granted in exchange with all coupons corresponding to the shares
held.

Timing of delivery: On or after June 21, 2013
Validity period: July 1, 2013 to December 31, 2013[NOTICE]
1. Account management institution where a shareholder has
its account with (securities company, etc.) is principally
responsible for handling shareholder’s address change,
repurchase requests and other processes. The relevant
inquiries should be made to the securities company, etc.
where the shareholder has its account with. Please notethat the transfer agent (Mitsubishi UFJ Trust and Banking
Corporation) does not handle such processes.
2. Mitsubishi UFJ Trust and Banking Corporation serves as
the account management institution to handle procedures
concerning shares registered in special accounts. The
relevant inquiries should be made to the accountmanagement institution for the special account specified
above (Mitsubishi UFJ Trust and Banking Corporation). All
domestic branches of Mitsubishi UFJ Trust and Banking
Corporation also accept inquiries.
3. Outstanding dividends can be received at headquarters andbranches of Mitsubishi UFJ Trust and Banking Corporation.
4. B ecause it is planned that the market of the Osaka Securities
Exchange will be integrated with the Tokyo Stock Exchange
effective July 16, 2013, the listed securities exchange of theCompany will become the Tokyo Stock Exchange effective
the same day.

C O N T E N T S
To Our Shareholders
Overview by Segment
Consolidated Financial Summary
Close-up: Exploring Daiichikosho s BusinessCorporate Profile
Securities code: 7458

Status of the Shares of the Company

To Our Shareholders

President

Saburo Hayashi

It gives me great pleasure to present the Business
Report of Daiichikosho Co., Ltd. (the“Company”) forthe 38th Term (April 1, 2012 to March 31, 2013).
Thanks to the shareholders, the Daiichikosho Group
was able to achieve steady growth in productshipments as a result of efforts to expand DAM sales
through product strategy centering on a new productgroup launched in October last year.
In addition, the elder business (business aimed at theelderly), which has provided extra strength to theCompany by making inroads in a new market,
e x p a n d e d f i r ml y . T h e n u m b e r o f e quip m e n t
installations of the DK ELDER SYSTEM, a content
delivery system aimed at the elderly, exceeded 10,000
locations in February this year. More than simply“product sales”, this is the result produced from our“human capital”, in other words, honest efforts by thesales representatives who demonstrated themagnificence o f the content s through ac tualperformance. The capability of the nation-wideorganization of our human capital is a strong point of
the Company, and this new business is expected tocontinue to secure new revenue for the future.

1

T o

Incidentally, at the 2013 Spring Conferment of
Decorations, the Company’s Honorary Chairman
Tadahiko Hoshi was conferred with an Order of the
Rising Sun, Gold Rays with Rosette for his achievementsin the development of the karaoke industry. This is truly
testimony that the karaoke industry has assumed asocial importance in society. Moving forward, theCompany also will put utmost effort into helping the
karaoke industry develop together with society, and wewill aim to be a company that can contribute to society.
The entire Company will work as one to meet the
expectations of all its shareholders. Please accept mysincerest thanks in anticipation of your ongoing support.

increased income from the other business, income
declined in the commercial karaoke and karaoke cabin
and restaurant businesses because of increased
operating expenses relating to measures to strengthen
the revenue base. As a result, operating income
totaled 18,395 million yen (down 2.0% compared withthe previous fiscal year). Because of an increase in nonoperating income including foreign exchange gains,
ordinary income amounted to 22,280 million yen(up 8.5%) and net income came to 12,819 million yen(up 19.9%) owing to a net improvement in extraordinary
income and loss. The ordinary income and net income
were both the highest on record.

Overview of FY2012

Outlook for FY2013

In the fiscal year ended March 31, 2013, in addition todepressed exports resulting from economic recessionin Europe and circumstances in China, the Japanese
economy was impacted by slowing domestic activity,
which had been supported by post-earthquake
recovery demand. Future economic outlook therefore
continued to be unclear. Nevertheless, a recovery ineconomic activity has been observed since January
and there is optimism toward the financial andeconomic measures of the new government.
Operating under these circumstances, the Daiichikosho
Group focused on expanding sales of its Daiichikosho
Amusement Multimedia (DAM) systems, concentratingon the new product group launched in October 2012,and developing the seniors market. In its karaoke cabin
and restaurant business, the Group implemented various
measures to differentiate shops from competitors andstrove to attract customers and improve customer
satisfaction. In the music software business, the Groupfocused on developing young artists.
As a result of the above, and because both thecommercial karaoke and karaoke cabin and restaurant
businesses increased their net sales, while sales in music
software and other businesses decreased, net sales forthe period under review amounted to 128,901 million
yen (up 1.3% compared with the previous fiscal year).
From the income standpoint, despite receiving

Regarding the outlook for the fiscal year ending March
31, 2014, there is a rising optimism toward economic
recovery as reflected in the improved businesssentiment and consumer confidence accompanying thefinancial and economic measures of the new
government. Nevertheless, there are also reasons forwariness, such as the ripple effect of these measures,the changes in consumer spending with the rise in
consumption tax imminent and uncertainty about theoverseas economic situation. Consequently, theoutlook remains difficult to forecast.
Amid such conditions, in order to promote theenjoyment of karaoke among all age groups—from theyoung generation to seniors—the Daiichikosho Groupwill focus on reinvigorating the karaoke market centeringon the commercial karaoke (karaoke systems andcontents provision) and karaoke cabin and restaurant
businesses (provision of karaoke venues), and creating
hit songs through the music software business, which we
believe will lead to improving revenues. Moreover, theGroup will expand its business activities that provide
contribution to society by offering karaoke as a methodof care prevention and health maintenance.
The business performance forecast for the next fiscal
year ending March 31, 2014 is net sales of 130.0 billion
yen, operating income of 19.0 billion yen, ordinary incomeof 20.4 billion yen, and net income of 12.0 billion yen.

O u r

S h a r e h o l d e r s

Consolidated Financial Highlights
Net sales(Millions of yen)

130,000

125,300

127,885

127,246

128,901(Forecast)

35th Term

36th Term

37th Term

38th Term

39th Term

Operating income
17,43916,51035th Term

36th Term(Millions of yen)

18,395(Forecast)

37th Term

38th Term

39th Term

Ordinary income

18,40817,45735th Term

36th Term(Millions of yen)

35th Term

20,40020,544

22,280(Forecast)

37th Term

38th Term

39th Term

Net income
10,72519,00018,774(Millions of yen)

9,590

36th Term

10,68937th Term

12,00012,819(Forecast)

38th Term

39th Term

2

Overview by Segment
Commercial Karaoke Business

T O P I C S（Commercial Karaoke Business）
50.4%

Net sales(Millions of yen)

62,40264,98537th Term

38th Term

Operating income

12,26637th Term(Millions of yen)

12,050◆New Product LaunchParty DAM HD◆Completion of Lineup for the Entire Market andFocus on SmartDAM, the New-Generation DENMOKU

Installations of the DK ELDER SYSTEM, equipment designed
to improve general functional ability in everyday life, passed
10,000 in February 2013 (approx. 10,500 installations asof March 31, 2013). We can therefore say that our efforts,
which included conducting effectiveness studies in joint
research with universities and proposing sessions combinedwith content, have borne fruit.

Party DAM HD, which was launched in April
2013, is our first integrated mobile unit with fullHD video. It offers beautiful video images and asense of realism. Suitable for various locations
such as hotels, traveler inns and wedding halls,
it can liven up the venue with a range of party
content that can produce fun moments.

With the launch of Party DAM HD, aimed at the hotel and traveler inn market,
the Group now has a complete system lineup for the entire market whencombined with LIVE DAM GOLD EDITION, the flagship model launched in
October 2012, Cyber DAM HD, designed with the night-time market in mind,
and FREE DAM, the DK ELDER SYSTEM series model recommended for theseniors market. Also, the Group is offering various programs and content
to be interlinked with karaoke systems via SmartDAM, the new-generation
DENMOKU, which has opened up new potential for karaoke.

38th Term

35.4%

In the commercial karaoke business, the number of
DAM systems in use steadily increased. The new
products launched in October 2012, which werereceived favorably by the market, included LIVE DAMGOLD EDITION, the top-of-the-range model, Cyber
DAM HD, which is the first system with loaded highdefinition video for the night-time market, andSmartDAM, a tablet-type new-generation DENMOKU
that is expected to penetrate the market. Also
8.3%
contributing to this increase were steady shipments of
FREE DAM, the recommended system for the DKELDER SYSTEM, and an increase in the number ofsystem rentals due to intensified sales efforts instrategically prioritized areas.
As a result of the above, net sales increased 4.1%
compared with the previous fiscal year due to theincrease in sales of products and revenues fromequipment rentals and information fees in association
with the increased number of systems in use.
However, operating income decreased 1.8% due to aprior investment for enhancement of business base
5.9
and an increase in operating expenses %including
selling expenses in association with launching new
products.

3◆DK ELDER SYSTEM
Passes 10,000 Installations

LIVE DAM GOLD EDITION

FREE DAM

Party DAM HD
Cyber DAM HD

SmartDAM

4

Overview by Segment
Karaoke Cabin and Restaurant Business

T O P I C S（Karaoke Cabin and Restaurant Business）
35.4%

Net sales

45,117(Millions of yen)

45,641

Operating income

7,140(Millions of yen)

6,852

◆Launch of New Collaboration Rooms
at BIG ECHOThe popular-artist and anime-character themed collaboration
rooms of BIG ECHO, which became a big hit each time theplan was realized, included EXILE, a popular vocal and dancegroup, BO∅WY, a legendary rock band, and KUMAMON, thePR character mascot for Kumamoto prefecture.

38th Term

37th Term

38th Term

In the karaoke cabin business, we are actively
developing three distinctly different shop brands,
each catering to different market attributes. Aiming to
attract customers and improve customer satisfaction,
we are differentiating our shops from those of ourcompetitors, such as by installing a women-only floor
decorated under the direction of an interior design
shop, establishing limited-period popular-artist
or
5.9%
anime themed collaboration rooms, and developing“concept rooms”that match customers’needs. In therestaurant business, we developed new formats
including Japanese-style taverns and Italian- andSpanish-style bars to complement our existing dining
bars and worked to select or combine businessformats that best meet the shifts in the market,
regional characteristics and the customer base.
As a result of the above efforts, although sales fromexisting shops were weak from the second quarter
onwards, new shops provided additional contribution
and net sales increased 1.2 % compared with theprevious fiscal year. Operating income, on the other
hand, decreased 4.0% on account of increased costs
associated with shop renewal and the conversion ofbusiness formats aimed at strengthening the revenue
base.

5

1 EXILE RoomBIG ECHO Shibuya
Period: February 8 to July 31, 2013 (Scheduled)◆Developing New Restaurant Formats
and Expanding Bar Formats
Newly introduced business formats in the restaurant business were“Hokkaido Izakaya
Zenibako”, a Japanese-style tavern that uses only quality Hokkaido produce to provide
the delicious flavors such ingredients offer, and“Italian Bar Komugi”and“Hokkaido Bar
Komugi”, an Italian-Spanish-style bar format based on the casual-dining concept of a
Spanish tavern.

Japanese-Style“Izakaya”Tavern Format

BIG ECHO

8.3%
37th Term

1

Hokkaido Izakaya Zenibako

2

Hamamatsucho Ekimae
Opened: March 14, 2013

BIG ECHO Umeda Kitashinchi Osaka Station 3 Building Mae

Period: March 27 to July 31, 2013 (Scheduled)
BIG ECHO Kumamoto Shimotori
Period: March 31 to July 31, 2013 (Scheduled)
BIG ECHO Shibuya Ekimae
Period: April 19 to July 31, 2013 (Scheduled)

2

Bar Format
Italian & Spain Bar Komugi

BO∅WY RoomBIG ECHO Yurakucho
Period: March 9 to July 31, 2013 (Scheduled)

3

3 KUMAMON’s Room

Yaesu
Opened: March 29, 2013
Kumamoto Shimotori
Opened: March 31, 2013

Hokkaido Bar Komugi
Keikyu Kawasaki Ekimae
Opened: March 11, 2013

BIG ECHO Kumamoto
Shimotori
Period: From March 31,
2013 onwards

J’
s Bar
Yurakucho
Opened: March 11, 2013
BIG ECHO Kumamoto Shimotoriⓒ2010 Kumamoto pref. kumamon #8007

6

Overview by Segment
Music Software BusinessNet sales(Millions of yen)

Operating income

1,433
10,974

10,65437th Term

38th Term

5.9%

8.3%

5.9%

37th Term(Millions of yen)

1,269

In the music software business, in addition tocompilations of young artists such as Sonar Pocket
and MAN WITH A MISSION, the stable sales of enka
(popular ballad) works by artists such as Saburo
Kitajima and Kaori Mizumori contributed to revenues.
Consequently, despite responding to a weakening
trend in music distribution sales with cost controlsthat focused on management efficiency, net sales
decreased 2.9% and operating income decreased
11.5% year on year.

Profiles of Much-Talked-About Artists◆Enka (Popular Ballads) / Popular Songs
Sonar Pocket’s album, Sonapokeism Vol. 4,
which was released on February 6, 2013,
continued on from the success of preceding
works to debut at No. 2 on the Oricon Album
Ranking. On May 15, 2013, a new single wasreleased that includes the theme music for
NHK TV animation Danchi Tomoo . From
March to June, they went on national tour,
playing 27 concerts in 25 cities to 60,000 fans.

MAN WITH A MISSION

MAN WITH A MISSION’s latest single Emotions , released in February 2013, brokethrough the Oricon chart to reach No. 3. Their opportunities to appear in the
media are becoming more frequent and theirname recognition and popularity are increasing.
In addition, their second album MASH UP THE
WORLD , released in July 2012, received the
5th CD SHOP AWARDS and became an
extraordinarily long selling album. Their first live
performance at the Nippon Budokan and theiroverseas tour were both remarkable successes.

7

Saburo Kitajima

This year, Saburo Kitajima is full of vigor,
performing on stage in Ina-no Kantaro Shinshu
Hitori Tabi at the Meijiza theater, Tokyo in
March and performing at the Shinkabukiza
theater, Osaka in June. In November, he isscheduled to perform at the Hakataza theater,
Fukuoka. On June 5, his debut anniversary, hereleased some energy-filled new songs.

Kaori Mizumori

On April 3, 2013, Kaori Mizumori released the
new song Ise Meguri . A promotional campaign
t ar g e t ing v arious r e g ions c ommenc e d inc onjunc t ion w i t h t he r el e a s e. She ma deappearances on music shows on NHK and otherTV stations and gave numerous performances.
The Kaori Mizumori Concert — Kayou Kikou —has been touring various locations across Japan.

(Millions of yen)

Operating income(Millions of yen)

1,241

37th TermT O P I C S（Music Software Business）

Sonar Pocket

Net sales

8,751

38th Term◆ＰＯＰS

Other Business

7,620

38th Term

In the content services to mobile phones, we
endeavored to reduce costs by eliminating or
consolidating certain content. Having fully withdrawn
from TV channels in the satellite broadcasting
business by the end of the previous fiscal year, we
focused on the BGM business.
A s a r e s u l t, n e t s a l e s i n t h e o t h e r b u s i n e s s
decreased 12.9% year on year while operating
income jumped 81.7% as our business reforms led tosignificantly better profitability.

683

37th Term

38th TermT O P I C S（Other Business）◆HD Conversion of Commercial
BGM/BGV Service STAR DAMSpaces that play tasteful and relaxing background music and video(BGM/BGV) such as restaurants, hotel lobbies, and medical clinic
waiting rooms, enhance their feeling of high-class comfort.
STAR DAM is a service package of commercial-use BGM/BGV
that can be played in such places. Included in STAR DAM is a
package of STAR digio, our BGM channel, and video channels (7channels). The video channels now play in HD video format.
The terrestrial television broadcasting has converted to digitaland high definition images have become the norm. Accompanying
this change, TV monitors have also grown in size. Our conversion
to high definition video has been therefore well received by thecustomers who watch our video channels, as well as by our
distributers.

8Consolidated Financial Summary■Summarized Consolidated Balance Sheets
Item
A s s e t s
Current assets
Noncurrent assets
Property, plant and equipment
Intangible assets
Investments and other assets
Total assets
L i a b i l i t i e s
Current liabilities
Noncurrent liabilities
Total liabilities
N e t a s s e t s
Shareholders’ equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Accumulated other comprehensive income
Valuation difference on available－for－sale securities
Revaluation reserve for land
Foreign currency translation adjustment
Minority interests
Total net assets
Total liabilities and net assets

37th Term(Millions of yen)

38th Term

As of March 31, 2012 As of March 31, 2013

52,50889,73051,074
6,553
32,102
142,238
26,15922,274
48,43392,996
12,35012,90568,730
△ 989
△ 170
793
△ 777
△ 186
978
93,804142,238*Amounts of less than one million yen are truncated.

62,365
97,11354,484
6,361
36,268
159,479
27,384
31,78059,16496,49012,3506,026
78,119
△5
2,768
3,646
△ 777
△ 100
1,056
100,315
159,479

P O I N T
●Current assets
The 9,857 million yen increase in current assets was mainly due to anincrease of 7,029 million yen in cash and deposits and an increase of 1,329
million yen in notes and accounts receivable—trade.
●Noncurrent assets
The 7,383 million yen increase in noncurrent assets was mainly due to anincrease of 5,106 million yen in investment securities and an increase of
1,418 million yen in karaoke rental equipment.
●Current liabilities
The 1,224 million yen increase in current liabilities was mainly due to an increaseof 1,668 million yen in accounts payable—other, an increase of 1,212 million yen
in notes and accounts payable—trade, a decrease of 829 million yen in income
taxes payable, and a decrease of 718 million yen in short-term loans payable.
●Noncurrent liabilities
The 9,505 million yen increase in noncurrent liabilities was mainly due to anincrease of 10,000 million yen in bonds payable.

9▶ For detailed financial information, please see the Financial Highlights section on the Company’s website : http://www.dkkaraoke.co.jp/english/financial.html■Summarized Consolidated Statements of Income
Item

37th Term(Millions of yen)

■Summarized Consolidated Statements of Cash Flows(Millions of yen)

38th Termfrom April 1, 2011
to March 31, 2012

from April 1, 2012
to March 31, 2013

127,246

128,901

74,87275,884

Net cash provided by (used in) operating activities

52,37353,01633,59834,62018,774

18,395Non-operating income

2,267

4,433

Non-operating expenses

498

548

20,544

22,28045

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income

Ordinary income
Extraordinary income
Extraordinary loss
Income before income taxes and minority interests
Income taxes—current

from April 1, 2012
to March 31, 2013

32,80824,482

Net cash provided by (used in) investing activities △ 17,619△ 18,553

Net cash provided by (used in) financing activities△ 7,404△ 989

Effect of exchange rate change on cash and cash equivalents

9

2,656

Net increase (decrease) in cash and cash equivalents

7,793

7,596

142

Cash and cash equivalents at beginning of period

26,57334,367

Cash and cash equivalents at end of period

34,36741,963

1,371

928

19,21821,495

8,309

8,604

135

△9

10,774

12,900Minority interests in income

84

81

10,68912,819Net income*Amounts of less than one million yen are truncated.
37th Term[Notes]1. Accumulated depreciation of property, plant and equipment
2. Guarantee obligation
3. Pledged assets
Corresponding liabilities
4. Net income per share
5. Net assets per share

59,406 million yen
163 million yen
5,229 million yen
1,605 million yen
167.70 yen
1,477.71 yen

38th Termfrom April 1, 2011
to March 31, 2012

Income before minority interests

Income taxes—deferred

Item37th Term

38th Term

59,927 million yen
60 million yen
4,437 million yen
1,195 million yen
209.06 yen
1,662.00 yen

P O I N T
●Net sales
Although the music software business and other business experienced reduced sales,
sales increased in the commercial karaoke business as well as in the karaoke cabin
and restaurant business. As a result, net sales totaled 128,901 million yen, a 1.3%
increase compared with the previous fiscal year.
●Operating income
Profit increased in the other business but decreased in the commercial karaoke businessand the karaoke cabin and restaurant business because of increased operating expenses
relating to measures to strengthen the revenue base. As a result, operating income cameto 18,395 million yen, a 2.0% decrease compared with the previous fiscal year.
●Ordinary income and net income
Ordinary income increased 8.5% year on year to 22,280 million yen, reflecting
increases in non-operating income including foreign exchange gains, and net income
increased 19.9% year on year to 12,819 million yen owing to a net improvement in
extraordinary income and loss. The ordinary income and net income were both thehighest on record.

P O I N T

●Net cash provided by (used in) operating activities
・Income before income taxes and minority interests
・Depreciation and amortization
・Increase in notes and accounts payable—trade

21,495 million yen
13,321 million yen
1,184 million yen●Net cash provided by (used in) investing activities
・Purchase of property, plant and equipment
・Purchase of intangible assets
・Payments for acquisition of video licenses

12,158 million yen
3,818 million yen
1,700 million yen●Net cash provided by (used in) financing activities
・Proceeds from issuance of bonds
・Repayment of long-term loans payable
・Cash dividends paid

9,946 million yen
4,372 million yen
3,430 million yen*Amounts of less than one million yen are truncated.

■Consolidated Statements of Changes in Net Assets

38th Term (from April 1, 2012 to March 31, 2013)

Shareholders' equity

Balance at the beginning of current period

Accumulated other comprehensive income(Millions of yen)

Minority Total net
assetsCapitalstock

Capitalsurplus

Total
Valuation difference Revaluation Foreign currency Total accumulated
Retained Treasury
shareholders' on available-for-sale reservetranslation other comprehensive interests
earnings
stock
equitysecurities
for landadjustment
income12,35012,90568,730△ 989

92,996

793

△ 777

△ 186

△ 170

978

93,804

Changes of items during the period
Dividends from surplus△ 3,429△ 3,429△ 3,429

Net income

12,81912,81912,819△ 5,895 △ 5,895△ 5,895

Purchase of treasury stock△ 6,879

Retirement of treasury stock

6,879

―

Net changes of items otherthan shareholders' equity
Total changes of items during the period
Balance at the end of current period

―
2,852

― △ 6,879
12,350

6,026

86

2,939

78

3,017

78

6,510

9,389

983

3,493

2,852

―

86

2,939

78,119△5

96,490

3,646

△ 777

△ 100

2,768

1,056 100,315*Amounts of less than one million yen are truncated.

10Exploring Daiichikosho's Business Vol.7

Vol.8

Increased Attention Attracted to the Elderly (over sixty-fives) Business
Its Enhanced Value to Society and Cooperation with Administration

Rating Karaoke Performance Just Like on TV Shows
SEIMITSU SAITEN DX (Precision scoring content) – How It Works and Why It Is Fun

C l o s e - u p

FREE DAM

We have been installing the DK ELDER SYSTEM (equipment
designed to improve general functional ability in everyday life)
in nursing homes and community centers since 2001. In thelast three years, we increased the number of these installations
by more than 7,000, passing 10,000 in February 2013 (10,500
installations as of March 31, 2013).
In addition to our efforts for expanding the market andplanning and development of contents, an important
contributing factor is that we are gaining greater understandingof the system from the facility staff members by providing
advice for constructing session programs and the results ofeffectiveness studies carried out in joint research with Tohoku
Fukushi University and Tsurumi University.
In addition, a DAM Club was opened at Koenji in Tokyo in
November 2011 as a place for healthy and vital elderly people
to gather under the theme of“singing and health”. We plan for
DAM Clubs to serve as a place to develop and test content
and programs that promote care prevention and good health.
Then in April 2012, we opened a DAM Club in Hari Onsen
Land, a hot springs facility for health promotion owned by the
Nara City (name was previously Tsuge Hot Springs, FitnessBird). Moreover, accompanying a relocation of the DAM Club
Koenji to Nakano in Tokyo in April 2013, we deepened ties
with Nakano City (Nakano-ku), and as a means of contributing

11

to care prevention
and health promotion
for the citizens ofNakano City, we
opened up part of the
facility as a place of
free-entry, calling it
Arai Enjoy Hiroba.
There, we arestrengthening ties withlocal government not
only by allowing the
local senior citizens
free use of karaoke,
DAM Club Nakano
but also by providing
visitors access toprograms that use DKELDER SYSTEM and a
1-to-2 hour session
Research Class each
day that offers
sessions for careprevention under the
direction of Tohoku
Fukushi University.
Users taking part in a program
Faced with thepresent situation of a super aging societ y, all l ocal
governments are leading initiatives aimed at preventing caredependence in order to reduce medical costs and nursing carecosts. Amid this, increased attention is being given to the
karaoke-based DK ELDER SYSTEM, which is attractive because
the elderly are familiar to karaoke and they can enjoy
themselves while at the same time looking forward to positive
health benefits.
The Daiichikosho Group will continue to give attention to theelderly (over sixty-fives) business that renders value to society.

To have one’s karaoke performance rated as often seenon TV shows, one needs the SEIMITSU SAITEN DX(Precision scoring content), which is preinstalled on the
LIVE DAM and LIVE DAM GOLD EDITION systems.
With a graphic display well-known from TV shows,the system’s evaluation of pitch and timing accuracy aswell as such vocal techniques as vibrato and tremolo
are shown on the screen, which are then converted into
a score.
Apparently a common request at karaoke cabin
reception desk is,“We want to sing in a cabin (using asystem) with a scoring function!”The aforementioned
graphic display is no doubt one of the reasons for its
popularity.
Older scoring functions compared the karaoke songdata with the singing voice from the microphone andproduced a score based on accuracy of pitch andtiming. This, however, tended to result in even quite
bland renditions attaining high scores.
Aiming to give high scores to great-sounding
performances, the SEIMITSU SAITEN series use an
improved scoring mechanism. For example, it positively
evaluates vocal techniques such as vibrato rather thanrecognizing it as off-pitch, and it also adds points fordiminuendo and crescendo.
The SEIMITSU SAITEN DX (Precision scoring content)also includes an analysis report function that displays
hundreds of comments regarding appraisal and advice.
There are also heaps of hints on how to obtain a higherscore. Users are inspired to continually strive to do
better.
Knowing all these features, the karaoke scoring
contests on TV shows become more interesting andusers are able to better enjoy the SEIMITSU SAITEN DX(Precision scoring content) at karaoke venues.
We definitely recommend that readers try it out.

12

Corporate Profile
Corporate Profile (as of March 31, 2013)
Corporate nameLocation
Established
Paid-in capital
Number of employees
Listing on JASDAQ

Daiichikosho Co., Ltd.
5-5-26 Kitashinagawa, Shinagawa-ku,
Tokyo 141-8701
Telephone: +81-3-3280-2151 (switchboard)
April 16, 1973
12,350 million yen
The Company 1,540
The Group 3,025
September 19, 1995

(as of March 31, 2013)

The Daiichikosho GroupThe Company and consolidated subsidiaries

37

companies(as of March 31, 2013)

Main Business Activities

Commercial karaoke businessKaraoke cabin and restaurant business
Music software business

Domestic sales subsidiaries: 24 companies
Johoku Daiichikosho Co., Ltd.

Tokai Daiichikosho Co., Ltd.

Kushiro Daiichikosho Co., Ltd.

Taito Daiichikosho Co., Ltd.

Hokuriku Daiichikosho Co., Ltd.

Kitatohoku Daiichikosho Co., Ltd.

Joto Daiichikosho Co., Ltd.

Kyoto Daiichikosho Co., Ltd.

Tohoku Daiichikosho Co., Ltd.

Josai Daiichikosho Co., Ltd.

Daiichikosho Kinki Co., Ltd.

Senior Managing Director and Senior Corporate Officer Tatsuya Kumagai

Jyoban Daiichikosho Co., Ltd.

Shonan Daiichikosho Co., Ltd.

Keihan Daiichikosho Co., Ltd.

Senior Managing Director and Senior Corporate Officer Hiroshi Mitomi

Gunma Daiichikosho Co., Ltd.

Niigata Daiichikosho Co., Ltd.

Hyogo Daiichikosho Co., Ltd.

Managing Director and Senior Corporate Officer Tadahiro Hoshi

Tochigi Daiichikosho Co., Ltd.

Nagano Daiichikosho Co., Ltd.

Kyushu Daiichikosho Co., Ltd.

Saitama Daiichikosho Co., Ltd.

Shizuoka Daiichikosho Co., Ltd.

Okinawa Daiichikosho Co., Ltd.

Honorary Chairman

Tadahiko Hoshi

President

Saburo Hayashi

Senior Managing Director and Senior Corporate Officer Kenichi Nemoto

Managing Director and Senior Corporate Officer Yuichi Murai
Managing Director and Senior Corporate Officer Yasutaka Wada
Directorand Corporate Officer Yasuhito Watanabe

Directorand Corporate Officer Akira Miyake

Directorand Corporate Officer Noriyuki Takehana

Director

Mitsuru Yoshikawa

Director

Yoshimi Shimizu

Standing Corporate Auditor (outside)

Fumito Ishizaka

Tokuma Japan Communications Co., Ltd. Zoom RepublicStanding Corporate Auditor (outside)

Nobuaki Otsuka

CROWN TOKUMA music distribution Co., Ltd. Union Eiga Co., Ltd.

Standing Corporate Auditor

Nobuyuki Takase

Corporate Auditor (outside)

Masumi Arichika

Tri-M, Inc.

Corporate Officer Hisahiro Ogura
Corporate Officer Akihito Yoshizawa
Corporate Officer Shigeki Kobayashi
Corporate Officer Hiroshi Kunitsu
Corporate Officer Kenji Otsuka
Corporate Officer Ichio Odagiri■ Number of authorized shares■ Number of shares outstanding

59,725,000 shares■ Number of shareholders

15,600■ Major shareholders

Number of shares held Ratio of voting rights

Name of shareholder
T

a

d

a

h

i

r

o

H a r u t o s h i

H

o

s

h

i

H o s h i

H o s h i

C r e a t e

A s a h i

B r e w e r i e s ,DK Music Publishing Co., Ltd.

Nippon Crown Co., Ltd.

Crown Music Enterprise Co.

Maruhagi Yoshu Kogyo Co., Ltd.

L t d .

The Master Trust Bank of Japan, Ltd. (Trust Account)
Mitsubishi UFJ Trust and Banking Corporation
Japan Trustee Services Bank, Ltd. (Trust Account)
The Dai-ichi Life Insurance Company, Limited(thousands of shares)

(%)

6,846

11.5

4,475

7.5

6,719
2,449
2,120
1,395
1,335
1,148
1,133
900

Foreign companies and foreigners
20,878（35.0%）

http://www.dkkaraoke.co.jp/

4.1
3.5
2.3
2.2
1.9
1.9

1.5

■ Shareholding Ratio by Category (thousands of shares/shareholding ratio)
Business companies and other corporations
5,822（9.7%）

Information to help everyone invest and thelatest information on BIG ECHO are posted on
DAM★Tomo information, which was redesignedin October 2012. (Japanese only)
Please visit us online and find more details.
URL

11.3

(Notes) 1. The Company holds 2,714 shares of treasury stock.
2. Values in“Number of shares held”and“Ratio of voting rights”arerounded down to the nearest unit.

Other domestic subsidiaries: 10 companies
DK Finance Co., Ltd.

L i m i t e d

The Chase Manhattan Bank N.A. London S.L. Omnibus Account.

Financial institutions
7,086（11.9%）

The Company’s website

200,000,000 shares

State Street Bank and Trust Company

Hokkaido Daiichikosho Co., Ltd.

Officers (as of June 21, 2013)

13

Status of the Shares of the Company

Front page

BIG ECHO

Financial instruments business operators
74（0.1%）
Individual shareholders and others
25,863（43.3%）

http://big-echo.jp/■ Stock price (monthly candlestick chart)

DAM★Tomo

Stock price trend (yen)
3,000
2,000

Overseas subsidiaries: 3 companies
DK KOREA Co., Ltd.

DAIICHI KOSHO (SHANGHAI) TRADE CO., LTD.

1,000
0

Number of shares traded (ten thousands of shares)
400
300

Daiichikosho (Shanghai), Ltd.
Note: D.K. Enterprises (Guam), Inc. has been excluded from the scope of
consolidation due to the sale of all its shares.

200
100

2011
2012
2013
Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar. Apr. May Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.

0

http://www.clubdam.com/damtomo/
Above screen current as of May 31, 201314