October 11, 2023

Summary of Consolidated Financial Results for the Fiscal Year Ended August 31, 2023
[Japanese GAAP]
Company name: KOSHIDAKA HOLDINGS Co., LTD.

Listing: Tokyo Stock Exchange
2157
URL: https://www.koshidakaholdings.co.jp/
Hiroshi Koshidaka, Representative Director and President
Yoshihito Doi, Managing Director
Tel: +81-570-666-425
Scheduled date of Annual General Meeting of Shareholders: November 28, 2023
Scheduled date of filing of Annual Securities Report:
November 29, 2023
Scheduled date of payment of dividend:
November 29, 2023
Preparation of supplementary materials for financial results: Yes
Holding of financial results meeting:Yes (for securities analysts and institutional investors)
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended August 31, 2023 (Sep. 1, 2022 – Aug. 31, 2023)(1) Consolidated results of operations(Percentages are year-on-year changes)
Net sales

Operating profit

Million yen%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen%

Million yen

%

7,104
3,643

95.0
-

54,62943.8
7,667 247.6
7,767
45.7
Fiscal year ended Aug. 31, 2023
37,995
82.7
2,205
5,331
Fiscal year ended Aug. 31, 2022
Note: Comprehensive income (million yen)
Fiscal year ended Aug. 31, 2023:
6,959 (up 105.8%)
Fiscal year ended Aug. 31, 2022:
3,381 (-%)
Net income
Diluted net
Return on
Ordinary profit
per share
income per shareequityon total assets
Yen

Yen

87.14
Fiscal year ended Aug. 31, 2023
44.68
Fiscal year ended Aug. 31, 2022
Reference: Equity in earnings of affiliates (million yen)%

Operating profit
to net sales

%

%

79.78
31.7
14.9
14.0
43.10
19.3
11.9
5.8
Fiscal year ended Aug. 31, 2023: - Fiscal year ended Aug. 31, 2022: -(2) Consolidated financial position
Total assets
As of Aug. 31, 2023
As of Aug. 31, 2022
Reference: Shareholders’ equity (million yen)

Net assets

Equity ratio

Million yen

Million yen%

57,00747,273As of Aug. 31, 2023:

25,394
19,50825,38544.5
41.2
As of Aug. 31, 2022:

Net assets per shareYen

311.36239.17
19,500(3) Consolidated cash flows
Cash flows fromoperating activities

Cash flows frominvesting activities

Cash flows fromfinancing activities

Cash and cash equivalents
at end of period

Million yen

Million yen

Million yen

Million yen

13,385
11,607(9,227)(7,887)(2,744)(2,327)

7,854
6,379

Fiscal year ended Aug. 31, 2023
Fiscal year ended Aug. 31, 2022

2. Dividends
Dividend per share
1Q-end2Q-end3Q-endYear-end

Total

Total
dividends

Yen

Yen

Yen

Yen

Yen

Million yen

Payout ratio(consolidated)

Dividend on
equity(consolidated)

%

%

4.00
4.00
8.00
658
17.9
3.5
Fiscal year ended Aug. 31, 2022
5.00
7.00
12.00
987
13.8
4.4
Fiscal year ended Aug. 31, 2023
Fiscal year ending Aug. 31, 2024
7.00
7.00
14.00
19.7
(forecast)
Note: Breakdown of dividends for the fiscal year ended Aug. 31, 2023: Ordinary dividends: 5.00 yen; Commemorative dividends tocelebrate 33rd founding anniversary: 2.00 yen

3. Consolidated Earnings Forecast for the Fiscal Year Ending August 31, 2024 (Sep. 1, 2023 – Aug. 31, 2024)
Net salesFirst half
Full year

Operating profit(Percentages are year-on-year changes)
Profit attributable to
Net income per shareowners of parent

Ordinary profit

Million yen%

Million yen%

Million yen%

Million yen%

Yen29,826
61,976

16.5
13.4

4,561
9,004

29.4
17.4

4,514
8,910

22.5
14.7

2,934
5,791

17.4
(18.5)

35.99
71.03

* Notes(1) Changes in significant subsidiaries during the period (changes in specified subsidiaries resulting in changes in scopeof consolidation): None
Newly added: -Excluded: -(2) Changes in accounting policies and accounting-based estimates, and restatements
1) Changes in accounting policies due to revisions in accounting standards, others: Yes
2) Changes in accounting policies other than 1) above: None
3) Changes in accounting-based estimates: None
4) Restatements: None

(3) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of Aug. 31, 2023:

82,300,000 shares

As of Aug. 31, 2022:

82,300,000 shares

As of Aug. 31, 2022:

767,296 shares

2) Number of treasury shares at the end of the period
As of Aug. 31, 2023:

767,376 shares

3) Average number of shares outstanding during the period
Fiscal year ended Aug. 31, 2023:

81,532,658 sharesFiscal year ended Aug. 31, 2022:

81,532,704 shares* The current financial report is not subject to audit by certified public accountants or auditing firms.
* Explanation of appropriate use of earnings forecasts, and other special items
Forecasts of future performance in these materials are based on assumptions judged to be valid and information available to theCompany’s management at the time the materials were prepared. These materials are not promises by the Company regarding future
performance. Actual results may differ significantly from these forecasts for a number of reasons. Please refer to page 4 of theattachments “1. Overview of Results of Operations, (4) Outlook” for forecast assumptions and notes of caution for usage.

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

Contents of Attachments
1. Overview of Results of Operations

2(1) Results of Operations

2(2) Financial Position

3(3) Cash Flows3(4) Outlook

4

2. Basic Approach to the Selection of Accounting Standards

5

3. Consolidated Financial Statements and Notes

6(1) Consolidated Balance Sheet

6(2) Consolidated Statements of Income and Comprehensive Income

8(3) Consolidated Statement of Changes in Equity

10(4) Consolidated Statement of Cash Flows

12(5) Notes to Consolidated Financial Statements

13

Going Concern Assumption

13

Changes in Accounting Policies

13

Revenue Recognition

13

Segment and Other Information

13

Per-share Information

17

Material Subsequent Events

17

1

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

1. Overview of Results of Operations(1) Results of Operations
In the fiscal year that ended in August 2023 (September 1, 2022 to August 31, 2023), prices increased steadily inJapan in part because of the protracted Ukraine conflict and shortages of energy and food products caused by thiscrisis. The yen’s depreciation made inflation in Japan even higher. Although the yen appreciated for a while inresponse to expectations of a review of U.S. and Japanese central bank interest rate policies, the dollar-yen
exchange rate was about the same at the beginning and end of the fiscal year. The pandemic, which had a severe
impact on consumer spending, held down this spending in the end of the year 2022 as people stayed home due toan 8th wave of infections. However, there were no requests for businesses to reduce operating hours and restrictions
on foreign visitors were reduced. Since the beginning of 2023, the Japanese economy has benefited from revenge
consumption in some sectors, including the tourism industry.
Business segment performance was as follows.
KaraokeIn the core karaoke business, sales were initially strong but subsequently became sluggish in the peak season fromlate-November through December as consumers refrained from going out due to the 8th wave of the pandemic.
After the end of this upturn in infections, the performance of existing stores has remained at above the pre -pandemic
level since January. This business continued to open many new locations just as it did even during the pandemic.
During the current fiscal year, 53 new Karaoke Manekineko locations in Japan were added.
Many activities are under way to accomplish the medium-term management vision of “Entertainment as
Infrastructure,” which was started in September 2019. Major initiatives are forms of entertainment other than
karaoke, such as Meta-kara (karaoke enhanced by virtual reality), PlayGarden (an amusement facility with billiards,
darts and other games) and Mirror Pon! (use of karaoke screen and speakers to watch content in the personal
devices), many types of content collaboration, and measures to upgrade and expand recruiting and training
activities. In addition, we developed and introduced DX to enhance operating efficiency and offer new types ofentertainment. In other countries, we restarted opening new stores in Southeast Asia , four in Malaysia and two in
Thailand during the current fiscal year.
At the end of August 2023, the number of karaoke locations in Japan was 625, 43 more than at the end of theprevious fiscal year. The number of overseas karaoke stores was 17 in four countries, consisting of four in South
Korea, ten in Malaysia, two in Thailand and one in Indonesia, six more than at the end of the previous fiscal year.
Sales in the Karaoke segment were 52,318 million yen, up 44.6% year on year, and there was a segment profit of
9,006 million yen, up 199.0% year on year.
Bath HouseAs in the Karaoke segment, customer footfall has been gradually recovering since the start of the year, despite theimpact of the 8th wave of the pandemic. However, soaring utility costs have exerted pressure on profits.
Sales in the Bath House segment were 1,057 million yen, up 18.2% year on year, and the segment profit improved
125 million yen from one year earlier to a profit of 52 million yen.
Real Estate Management
Occupancy was almost 100% at both of the major properties in this segment, the AQERU M aebashi commerce &business complex and the Fleuret Hanasaki Building in Yokohama. Furthermore, this business purchased a property
in the city of Kyoto for stores, and sold Sport Nagoya property in the second half of the current fiscal year.
Sales in the Real Estate Management segment were 1,488 million yen, up 31.2% year on year, and the segment
profit was 149 million yen, down 9.6% year on year.
Overall, the Koshidaka Group (KOSHIDAKA HOLDINGS Co., LTD. and its consolidated subsidiaries) had salesof 54,629 million yen, up 43.8% year on year. The operating profit was 7,667 million yen, up 247.6% year on year,
the ordinary profit was 7,767 million yen, up 45.7% year on year, and the profit attributable to owners of parent

2

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

was 7,104 million yen, up 95.0% year on year.
(2) Financial Position
Financial position at the end of the current fiscal year is as follows.
AssetsTotal assets at the end of the current fiscal year increased 9,734 million yen (20.6%) from the end of the previous
fiscal year to 57,007 million yen.
Current assets increased 2,462 million yen (24.8%) to 12,374 million yen. This was mainly due to increases of
1,459 million yen in cash and deposits, 421 million yen in notes and accounts receivable-trade and 276 million yen
in other current assets.
Property, plant and equipment increased 4,930 million yen (18.2%) to 32,032 million yen. This was mainly due toincreases of 2,182 million yen in buildings and structures, net, 595 million yen in vehicles, tools, furniture andfixtures, net, and 2,136 million yen in land.
Intangible assets increased 71 million yen (16.3%) to 510 million yen.
Investments and other assets increased 2,269 million yen (23.1%) to 12,090 million yen. This was mainly due toincreases of 807 million yen in long-term loans receivable and 1,461 million yen in leasehold and guarantee
deposits.
Total non-current assets increased 7,271 million yen (19.5%) to 44,633 million yen.
Liabilities
Current liabilities increased 4,320 million yen (44.8%) to 13,964 million yen. This was mainly due to increases of
1,041 million yen in accounts payable-other, 1,526 million yen in income taxes payable and 1,271 million yen inother current liabilities.
Non-current liabilities decreased 472 million yen (2.6%) to 17,648 million yen. This was mainly due to increasesof 457 million yen in deferred tax liabilities, 912 million yen in asset retirement obligations, and a decrease of
1,807 million yen in long-term borrowings.
Total liabilities increased 3,848 million yen (13.9%) to 31,613 million yen.
Net assets
Net assets increased 5,885 million yen (30.2%) to 25,394 million yen. This was mainly due to an increase of 6,031
million yen in retained earnings due to fiscal year earnings.
(3) Cash Flows
Cash and cash equivalents (hereinafter “net cash”) at the end of the current fiscal year increased 1,474 million yen
from the end of the previous fiscal year to 7,854 million yen.
The cash flow components during the current fiscal year and the main reasons for changes are as described below.
Cash flows from operating activities
Net cash provided by operating activities totaled 13,385 million yen, compared with 11,607 million yen provided
in the previous fiscal year. Main factors include profit before income taxes of 10,541 million yen, depreciation of
3,887 million yen, impairment losses of 1,202 million yen, an increase of 1,444 million yen in accounts payableother and accrued expenses and a gain on sales of property, plant and equipment of 4,043 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 9,227 million yen, compared with 7,887 million yen used in theprevious fiscal year. Main factors include purchase of property, plant and equipment of 11,046 million yen,
payments of leasehold and guarantee deposits of 1,482 million yen, loan advances of 1,805 million yen andproceeds from sale of property, plant and equipment of 5,463 million yen.

3

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

Cash flows from financing activities
Net cash used in financing activities totaled 2,744 million yen, compared with 2,327 million yen used in theprevious fiscal year. Main factors include proceeds from long-term loans payable of 700 million yen, repaymentsof long-term borrowings of 2,710 million yen and dividends paid of 733 million yen.
(4) Outlook
Uncertainties such as the prolonged war in Ukraine, price hikes due to the resulting shortages of energy and food,and the global economic slowdown due to monetary tightening to combat inflation are likely to co ntinue. However,policies to restrict movement of people that were introduced to fight the successive outbreaks of the pandemic andhad a significant impact on consumer behavior over the past three years are being lifted. Border controls were also
eased, and COVID-19 has been downgraded to the same category as seasonal influenza, etc., under the Infection
Control Law. Revenge consumption has started in Japan as demand suppressed during the pandemic is finallyreleased and is expected to continue during the fiscal year ending in August 2024.
Karaoke
The core Karaoke business has completed the phase of recovering from the pandemic as the number of customers
at existing stores during the previous fiscal year’s second half returned to the pre-pandemic level. The goal is toadvance to a broad-based growth phase while benefiting fully from revenge consumption, which is expected tocontinue for a while. This business will continue to open many stores and further diversify the lineup of services.
The goal is to rapidly accomplish the medium-term management vision of “Entertainment as Infrastructure” byoperating private entertainment rooms everywhere in Japan.
The Karaoke business will continue adding locations in the Tokyo area, where store utilization rates are likely tobe high, and in the Kinki area and other areas where there are many potential locations for new stores. Anothergoal is the conversion of karaoke rooms into “personal entertainment rooms” by providing a diverse selection ofservices in addition to karaoke. Activities include enhancing existi ng services such as Meta-kara and ONEREC(karaoke rooms with high-quality video recording equipment) as well as continuing to develop new services.
Furthermore, to build a sound base for accomplishing the “Entertainment as Infrastructure” vision, activitie s forrecruiting and training people will be increased. One more step is the start of a new personnel system in the fiscal
year ending in August 2024 that includes a big increase in average salaries. Koshidaka Digital Co., Ltd. has been
established for the purpose of speeding up the development and use of a variety of systems required for the creationand launch of new private entertainment room measures and for raising the productivity of the operation for the
chain.
The potential for growth in other countries is even greater than in Japan. We plan to increase the pace of karaoke
store openings in Southeast Asia following the resumption of adding new stores in the previous fiscal year. In thefiscal year ending in August 2024, there are already two new stor es in Malaysia and one more is planned by theend of 2023. We also plan to open a karaoke store in Thailand in October and one more in Indonesia in November.
Preparations for opening these new locations are proceeding as planned.
Due to these initiatives, we forecast a 14.8% increase in Karaoke segment sales to 60,075 million yen and a 15.4%
increase in segment profit to 10,390 million yen.
Real Estate Management
This business will continue to seek opportunities to acquire more properties and work on incre asing the occupancy
rates of properties that are currently owned.
Due to these activities, we forecast a 5.2% increase in Real Estate Management segment sales to 1,565 million yen
and a 39.6% decrease in segment profit to 90 million yen.
Bath House/OtherTokyo Kenko Land Manekineko Bath House, which is in Tokyo’s Edogawa-ku, closed on September 3, 2023. At
the remaining two facilities, we will continue to make the health and safety of customers and employees the highest
priority. In addition, this business plans to develop new services at bath houses and will continue to conduct training

4

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

programs for employees.
We forecast a 46.7% decrease in the Bath House segment sales to 563 million yen and the segment profit of 10
million yen, an 80.7% decrease from the previous fiscal year. Due to the declining significance of this businesssegment, we plan to reexamine businesses that are classified as reportable segments in the fiscal year ending inAugust 2024.
Overall, we forecast consolidated net sales of 61,976 million yen, up 13.4%, operating profit of 9,004 million yen,
up 17.4%, ordinary profit of 8,910 million yen, up 14.7%, and profit attributable to owners of parent of 5,791
million yen, down 18.5% for the fiscal year ending August 31, 2024.
2. Basic Approach to the Selection of Accounting Standards
The Koshidaka Group will continue to prepare consolidated financial statements in accordance with generally
accepted accounting principles in Japan for the time being to permit comparisons with prior years and with thefinancial data of other companies. We will consider the use of International Financial Reporting Standards (IFRS)
in the future based on changes in foreign ownership of our stock, the growth of our overseas operations and otherfactors.

5

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

3. Consolidated Financial Statements and Notes(1) Consolidated Balance Sheet
FY8/22(As of Aug. 31, 2022)(Thousands of yen)
FY8/23(As of Aug. 31, 2023)

AssetsCurrent assets
Cash and deposits

6,977,443

8,437,076

525,866

947,213

Merchandise

23,707

169,363

Raw materials and supplies

240,144384,959

Other

2,161,669

2,438,031

Allowance for doubtful accounts(17,677)(2,575)

Total current assets

9,911,154

12,374,069

Notes and accounts receivable-tradeNon-current assets
Property, plant and equipment
Buildings and structures

37,705,270

40,762,934

Accumulated depreciation(17,300,074)(18,175,557)

Buildings and structures, net

20,405,196

22,587,377

Vehicles, tools, furniture and fixtures
Accumulated depreciation
Vehicles, tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment

14,214,174

15,628,010(12,017,175)(12,835,258)

2,196,998

2,792,752

4,490,814

6,627,123

9,010

25,02927,102,019

32,032,282

Intangible assets
Goodwill

4,915

1,290

Software223,418

364,271

Other

210,914145,345

Total intangible assets

439,248

510,907

Investments and other assets
Investment securities
Long-term loans receivable
Long-term prepaid expenses

151,961

299,118

1,397,800

2,205,026

44,866603,846

Leasehold and guarantee deposits

6,045,882

7,507,557

Deferred tax assets

2,563,537

2,068,785

Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

6

182,386

151,916(565,660)(745,706)

9,820,774

12,090,543

37,362,042

44,633,733

47,273,196

57,007,803

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

FY8/22(As of Aug. 31, 2022)(Thousands of yen)
FY8/23(As of Aug. 31, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade443,200

644,739

Current portion of long-term borrowings

2,188,243

1,911,240

Accounts payable-other

1,744,506

2,785,751

Accrued expenses

1,377,403

1,610,478

Income taxes payable

736,756

2,262,994

Provision for bonuses

229,570

347,162

Deposits received

56,297263,142

Other

2,867,573

4,138,895

Total current liabilities

9,643,551

13,964,404

4,000,000

4,000,000

8,744,700

6,937,210

233,336

690,852

4,225,294

5,137,733

917,666

883,089

18,120,998

17,648,884

27,764,549

31,613,289

2,070,257

2,070,257

Non-current liabilities
Convertible-bond-type bonds with share acquisitionrightsLong-term borrowings
Deferred tax liabilities
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus

3,302,786

3,302,786

Retained earnings

14,423,589

20,455,244

Treasury shares(105,662)(105,741)

Total shareholders’ equity

19,690,970

25,722,546

Accumulated other comprehensive income
Valuation difference on available-for-sale securities

24,18947,576

Foreign currency translation adjustment(215,134)(384,231)

Total accumulated other comprehensive income(190,945)(336,654)

Share acquisition rights
Total net assets
Total liabilities and net assets

7

8,622

8,622

19,508,647

25,394,514

47,273,196

57,007,803

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23(2) Consolidated Statements of Income and Comprehensive Income
Consolidated Statement of Income(Thousands of yen)
FY8/22
FY8/23(Sep. 1, 2021 – Aug. 31, 2022) (Sep. 1, 2022 – Aug. 31, 2023)
Net sales

37,995,366

54,629,894

Cost of sales

31,854,675

41,321,136

Gross profit

6,140,690

13,308,757

Selling, general and administrative expenses

3,934,711

5,641,363

Operating profit

2,205,979

7,667,393

19,05642,490209,806

214,3432,934,290-

Non-operating income
Interest and dividend income
Foreign exchange gains
Subsidy income
Other

117,563

98,9893,280,716

355,823

50,97523,827500505Provision of allowance for doubtful accounts

70,060182,378

Other

33,58349,133

Total non-operating expenses

155,118

255,8435,331,577

7,767,373

Gain on sale of non-current assets

84,224

4,043,304

Total extraordinary income

84,224

4,043,304

Total non-operating income
Non-operating expenses
Interest expenses
Commission expenses

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses
Loss on valuation of investment securities

36,76858,371

1,071,751

1,202,028

256,061

8,363

1,364,581

1,268,763

4,051,219

10,541,914

Income taxes-current

764,086

2,495,024

Income taxes-deferred(356,079)

941,945

Total extraordinary losses
Profit before income taxes

Total income taxes

408,0073,436,969

Profit3,643,212

7,104,945

Profit attributable to owners of parent

3,643,212

7,104,945

8

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

Consolidated Statement of Comprehensive Income(Thousands of yen)
FY8/22
FY8/23(Sep. 1, 2021 – Aug. 31, 2022) (Sep. 1, 2022 – Aug. 31, 2023)
Profit3,643,212

7,104,945

Other comprehensive income
Valuation difference on available-for-sale securities(3,260)23,387

Foreign currency translation adjustment(258,614)(169,096)

Total other comprehensive income(261,874)(145,709)

3,381,337

6,959,236

3,381,337

6,959,236

Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent

9

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23(3) Consolidated Statement of Changes in Equity
FY8/22 (Sep. 1, 2021 – Aug. 31, 2022)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

Totalshareholders’equityCapital surplus Retained earnings Treasury shares

2,070,257

3,302,786

12,840,049(105,662)

18,107,431(1,570,477)
2,070,257

3,302,786

11,269,572(1,570,477)(105,662)

16,536,954

Changes during period
Dividends of surplus
Profit attributable to ownersof parent
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period(489,196)(489,196)

3,643,212

3,643,212--

3,154,016-

3,154,016

2,070,257

3,302,786

14,423,589(105,662)

19,690,970(Thousands of yen)

Accumulated other comprehensive income
Valuation
Foreign currency Total accumulateddifference ontranslation
other comprehensive
available-for-saleadjustment
incomesecurities
Balance at beginning of
periodCumulative effects ofchanges in accounting
policies
Restated balance

27,44943,47970,929ShareacquisitionrightsTotal net
assets-

18,178,360(1,570,477)

27,44943,47970,929-16,607,883

Changes during period
Dividends of surplus
Profit attributable to ownersof parent
Net changes in items otherthan shareholders’ equity(489,196)
3,643,212(3,260)(258,614)(261,874)

8,622(253,252)

Total changes during period(3,260)(258,614)(261,874)

8,622

2,900,763

Balance at end of period

24,189(215,134)(190,945)

8,622

19,508,647

10

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

FY8/23 (Sep. 1, 2022 – Aug. 31, 2023)(Thousands of yen)
Shareholders’ equity
Share capital
Balance at beginning of
periodTotal
shareholders’equityCapital surplus Retained earnings Treasury shares

2,070,257

3,302,786

14,423,589(105,662)

19,690,970

Changes during period
Dividends of surplus(733,794)(733,794)

Profit attributable to ownersof parent

7,104,945

7,104,945

Purchase of treasury shares(79)

Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period(79)(339,496)(339,496)--

6,031,655(79)

6,031,575

2,070,257

3,302,786

20,455,244(105,741)

25,722,546(Thousands of yen)

Accumulated other comprehensive income
Valuation
Foreign currency Total accumulateddifference ontranslation
other comprehensive
available-for-saleadjustment
incomesecurities
Balance at beginning of
period24,189(215,134)(190,945)

ShareacquisitionrightsTotal net
assets8,622

19,508,647

Changes during period
Dividends of surplus(733,794)

Profit attributable to ownersof parent

7,104,945

Purchase of treasury shares(79)

Change from merger ofconsolidated andunconsolidated subsidiaries
Net changes in items otherthan shareholders’ equity(339,496)
23,387(169,096)(145,709)-(145,709)

Total changes during period

23,387(169,096)(145,709)-

5,885,866

Balance at end of period

47,576(384,231)(336,654)

8,622

25,394,514

11

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23(4) Consolidated Statement of Cash Flows(Thousands of yen)
FY8/22
FY8/23(Sep. 1, 2021 – Aug. 31, 2022) (Sep. 1, 2022 – Aug. 31, 2023)
Cash flows from operating activities
Profit before income taxes
Depreciation
Impairment losses
Amortization of goodwill
Increase (decrease) in provision for bonuses
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)
Loss (gain) on sale of property, plant and equipment
Decrease (increase) in trade receivables
Decrease (increase) in inventories
Decrease (increase) in accounts receivable-other
Increase (decrease) in trade payables
Increase (decrease) in accounts payable-other, andaccrued expenses
Other, net

4,051,219
3,589,636
1,071,751
4,682
99,86070,060(19,056)
50,975(84,224)(434,562)(43,855)
1,517,530
235,954

10,541,914
3,887,968
1,202,028
3,625
117,592
147,279(42,490)
23,827(164,831)(4,043,304)(417,272)(288,222)
145,400
191,787493,749

1,444,841

1,094,044

1,615,785

11,697,766

14,365,931

19,056(50,841)(58,743)

42,490(24,121)(998,979)

11,607,238

13,385,321

Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sales of investment securities
Payments of leasehold and guarantee deposits
Proceeds from refund of leasehold and guarantee deposits
Loan advances
Proceeds from collection of loans receivable
Other, net(6,901,261)
262,160(285,315)
15,680(823,492)
71,304(237,430)
10,562-(11,046,881)
5,463,786(269,306)(125,627)
8,960(1,482,891)
24,185(1,805,183)
11,327(5,680)Net cash provided by (used in) investing activities(7,887,793)(9,227,310)

SubtotalInterest and dividends received
Interest paid
Income taxes refund (paid)
Net cash provided by (used in) operating activities
Cash flows from investing activities

Cash flows from financing activities
Proceeds from issuance of convertible bond-type bonds
with subscription rights to shares
Proceeds from issuance of share acquisition rights
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid

3,990,300-

8,622(4,500,000)
2,872,000(4,209,537)(489,196)

700,000(2,710,403)(79)(733,794)

Net cash provided by (used in) financing activities(2,327,811)(2,744,276)

Effect of exchange rate change on cash and cash equivalents(183,390)

47,255

Net increase (decrease) in cash and cash equivalents

1,208,243

1,460,990

Cash and cash equivalents at beginning of period
Increase in cash and cash equivalents resulting from merger
with unconsolidated subsidiaries
Cash and cash equivalents at end of period

5,171,157

6,379,401-

13,8786,379,401

7,854,269

12

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23(5) Notes to Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Changes in Accounting Policies
Koshidaka Holdings has applied the Implementation Guidance on Accounting Standard for Fair Value Measurement(Accounting Standards Board of Japan (ASBJ) Guidance No. 31, June 17, 2021) from the beginning of the firstquarter of the fiscal year, and has applied the new accounting policies set forth by the Implementati on Guidanceon Accounting Standard for Fair value Measurement prospectively in accordance with the transitional treatmentprescribed in Paragraph 27-2 of the Implementation Guidance on Accounting Standard for Fair Value Measurement.
There is no effect of the application of this guidance on the consolidated financial statements.
Revenue Recognition
Information related to disaggregation of revenue from contracts with customers is described in the Segment andOther Information section.
Segment and Other Information
Segment information
1. Overview of reportable segments(1) Method of determining the reportable segments
Segments used for financial reporting are the Koshidaka Group’s constituent units for which separate financial information
is available and for which the Board of Directors performs periodic studies for the purposes of determining the allocation of
resources and evaluating performance.
The Koshidaka Group uses a holding company structure. Under Koshidaka Holdings, a holding compa ny, each subsidiary
determines comprehensive strategies for services they provide and develops business operations.
Consequently, business operations are divided into segments based on services provided by each subsidiary, resulting in thefollowing three reportable segments.
(2) Services by each reportable segment
1) Karaoke is the operations of the network of karaoke facilities.
2) Bath House is the operation of bath house facilities.
3) Real Estate Management is the leasing and management of real estate.
2. Calculation methods for net sales, profit/loss, assets, liabilities and other items for each reportable segment
The accounting methods for reportable segments are generally the same as accounting policies used in the preparation of
consolidated financial statements. Profits for reportable segments are operating profit and inter-segment sales and transfers
are based on market prices.

13

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

3. Information related to net sales, profit/loss, assets, liabilities and other items for each reportabl e segment
FY8/22 (Sep. 1, 2021 – Aug. 31, 2022)
Reportable segment
Karaoke
Net sales
Revenue fromcontracts withcustomers
Other revenue

Real EstateManagement

Bath House

36,178,104

894,737

2,678

Total

(Thousands of yen)Amounts shown
Adjustment
on consolidated(Notes 1 andfinancial
2)statements(Note 3)37,075,521-

37,075,521--

919,845919,845-919,845

36,178,104

894,737

922,523

37,995,366-

37,995,366--

212,169

212,169(212,169)-

36,178,104

894,737

1,134,693

38,207,536(212,169)

37,995,366

Segment profit (loss)

3,012,465(73,283)

165,9023,105,085(899,106)

2,205,979

Segment assets

29,649,101

439,784

10,227,412

40,316,298

6,956,898

47,273,196

External sales
Inter-segment sales
and transfers
Total

Other items
Depreciation
3,099,057
54,117
420,597
3,573,773
15,8633,589,636
Amortization of
4,682
4,682
4,682
goodwill
Impairment loss
1,025,957
45,794
1,071,751
1,071,751
Increase in property,
plant and equipment
4,244,270
7,934
3,844,307
8,096,512
167,442
8,263,954
and intangible assets
Notes: 1. The -899,106 thousand yen adjustment to segment profit mainly includes general and administrative expenses thatcannot be attributed to reportable segments.
2. The 6,956,898 thousand yen adjustment to segment assets includes corporate assets that are not allocated to any of
the reportable segments. Corporate assets mainly include excess working capital (cash and investment securities)
and assets related to the administrative division.
3. Segment profit (loss) is adjusted to be consistent with operating profit shown on the consolidated statement ofincome.

14

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

FY8/23 (Sep. 1, 2022 – Aug. 31, 2023)
Reportable segment
Karaoke
Net sales
Revenue fromcontracts withcustomers
Other revenue

Real EstateManagement

Bath House

52,318,336

1,057,859

243,461

Total(Thousands of yen)Amounts shown on
Adjustment
consolidated(Notes 1 andfinancial
2)statements(Note 3)53,619,657-

53,619,657--

1,010,236

1,010,236-

1,010,236

External sales
Inter-segment sales
and transfers
Total

52,318,336

1,057,859

1,253,697

54,629,894-

54,629,894--

234,735

234,735(234,735)-

52,318,336

1,057,859

1,488,433

54,864,630(234,735)

54,629,894

Segment profit

9,006,746

52,458

149,952

9,209,157(1,541,763)

7,667,393

Segment assets

35,814,463

460,553

12,805,139

49,080,156

7,927,647

57,007,803

Other items
Depreciation
3,340,408
37,424431,259
3,809,092
78,875
3,887,968
Amortization of
3,625
3,625
3,625
goodwill
Impairment loss
808,521
120,881
210,852
1,140,255
61,773
1,202,028
Increase in property,
plant and equipment
7,693,315
5,458
3,214,204
10,912,979
225,980
11,138,959
and intangible assets
Notes: 1. The -1,541,763 thousand yen adjustment to segment profit mainly includes general and administrative expenses
that cannot be attributed to reportable segments.
2. The 7,927,647 thousand yen adjustment to segment assets includes corporate assets that are not allocated to any of
the reportable segments. Corporate assets mainly include excess working capital (bank deposits) and assets related
to the administrative division.
3. Segment profit is adjusted to be consistent with operating profit shown on the consolidated statem ent of income.

Related information
FY8/22 (Sep. 1, 2021 – Aug. 31, 2022)
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Net sales
This information is omitted because external sales in Japan exceeded 90% of net sales on the consolidated statement of income.
(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan exceeded 90% of property, plant and equipmenton the consolidated balance sheet.
3. Information by major client
This information is omitted because no specific external client accounts for 10% or more of net sales on the consolidated
statement of income.
FY8/23 (Sep. 1, 2022 – Aug. 31, 2023)
1. Information by product or service
This information is omitted because the same information is presented in segment information.
2. Information by region(1) Net sales
This information is omitted because external sales in Japan exceeded 90% of net sales on the consolidated statement of income.

15

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23(2) Property, plant and equipment
This information is omitted because property, plant and equipment in Japan exceeded 90% of property, plant and equipmenton the consolidated balance sheet.
3. Information by major client
This information is omitted because no specific external client accounts for 10% or more of net sales on the consolidated
statement of income.

Information related to impairment losses on non-current assets for each reportable segment
FY8/22 (Sep. 1, 2021 – Aug. 31, 2022)
This information is omitted because the same information is presented in segment information.
FY8/23 (Sep. 1, 2022 – Aug. 31, 2023)
This information is omitted because the same information is presented in segment information.

Information related to goodwill amortization and the unamortized balance for each reportable segment
FY8/22 (Sep. 1, 2021 – Aug. 31, 2022)(Thousands of yen)

Goodwill amortization

4,682

-

-

Elimination or
corporate-

Balance at end of period

4,915

-

-

-

KaraokeReal EstateManagement

Bath House

FY8/23 (Sep. 1, 2022 – Aug. 31, 2023)

Total
4,682
4,915
(Thousands of yen)

Goodwill amortization

3,625

-

-

Elimination or
corporate-

Balance at end of period

1,290

-

-

-

KaraokeReal EstateManagement

Bath House

Information related to gain on bargain purchase for each reportable segment
FY8/22 (Sep. 1, 2021 – Aug. 31, 2022)
Not applicable.
FY8/23 (Sep. 1, 2022 – Aug. 31, 2023)
Not applicable.

16

Total
3,625
1,290

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for FY8/23

Per-share Information(Yen)
FY8/22(Sep. 1, 2021 – Aug. 31, 2022)

FY8/23(Sep. 1, 2022 – Aug. 31, 2023)

Net assets per share

239.17

Net assets per share

311.36

Net income per share

44.68

Net income per share

87.14

Diluted net income per share

43.10 Diluted net income per share
79.78
Notes: 1. The Company’s stock held by the employee stock ownership plan (J-ESOP) is included in treasury shares and isthus deducted from the number of shares outstanding at the end of each fiscal year that was used to calculate net
assets per share (765,580 shares as of August 31, 2022 and 767,376 shares as of August 31, 2023).
In addition, the average number of treasury shares outstanding during the period, which was deducted from thecalculation of net income per share, was 765,580 shares for FY8/22 and 767,341 shares for FY8/23.
2. The basis for calculating net income per share and diluted net income per share is as follows:(Thousands of yen)
FY8/22
FY8/23(Sep. 1, 2021 – Aug. 31, 2022) (Sep. 1, 2022 – Aug. 31, 2023)
Net income per share
Profit attributable to owners of parent

3,643,212

7,104,945--

3,643,212

7,104,945

81,532,704

81,532,658

Adjustment to profit attributable to owners of parent

1,239

2,782

[of which, interest expenses (after deducting amountequivalent to tax)][1,239][2,782]

Increase in the number of common shares (shares)

3,025,995

7,559,517[of which convertible-bond-type bonds with shareacquisition rights (shares)][2,776,243][5,925,900][249,751][1,633,617]

Amounts not available to common shareholders
Profit attributable to owners of parent available tocommon stock
Average number of shares outstanding during theperiod (Shares)
Diluted net income per share[of which share acquisition rights (shares)]
Summary of dilutive shares not included in thecalculation of diluted net income per share since
there was no dilutive effect-

Material Subsequent Events
Not applicable.

This summary report is solely a translation of “Kessan Tanshin” (in Japanese, including attachments), which has been
prepared in accordance with accounting principles and practices generally accepted in Japan, for the convenience of readers
who prefer an English translation.

17