July 10, 2024

Summary of Consolidated Financial Results
for the Third Quarter of the Fiscal Year Ending August 31, 2024
(Nine Months Ended May 31, 2024)[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, Senior Executive Director
Tel: +81-570-666-425
Scheduled date of filing of Quarterly Report:
July 10, 2024
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes (in Japanese, English to be delayed)
Holding of quarterly financial results meeting:
None
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Third Quarter Ended May 31, 2024 (Sep. 1, 2023 – May 31, 2024)(1) Consolidated results of operations(Percentages are year-on-year changes)
Net sales

Operating profit

Million yen%

Million yen%

46,384
16.0
7,047
18.3
7,801
27.0
Nine months ended May 31, 2024
39,98147.9
5,955 356.4
6,143
46.4
Nine months ended May 31, 2023
Note: Comprehensive income (million yen)
Nine months ended May 31, 2024: 5,392 (down 20.5%)
Nine months ended May 31, 2023: 6,783 (up 194.5%)
Net income per share Diluted net income per share

5,367
6,843

(21.6)
175.5

Nine months ended May 31, 2024
Nine months ended May 31, 2023%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen

Yen

Yen

65.84
83.94

60.36
76.96

(2) Consolidated financial position
Total assets
As of May 31, 2024
As of Aug. 31, 2023
Reference: Shareholders’ equity (million yen)

Net assets

Equity ratio

Million yen

Million yen%

60,24857,007
As of May 31, 2024:

29,64525,394
29,63749.2
44.5
As of Aug. 31, 2023:

1Q-end2Q-end25,385

2. Dividends

Yen

Fiscal year ended Aug. 31, 2023
Fiscal year ending Aug. 31, 2024
Fiscal year ending Aug. 31, 2024 (forecast)
Note: Revisions to the most recently announced dividend forecast: Yes

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

5.00
7.00

-

7.00

12.00

11.00

18.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending August 31, 2024 (Sep. 1, 2023 – Aug. 31, 2024)
Net sales
Million yen

Operating profit%

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

Ordinary profit
Million yen%

Million yen%

Yen

Full year
62,728
14.8
9,278
21.0
9,939
Note: Revisions to the most recently announced earnings forecast: None

%

28.0

6,753

(5.0)

82.83

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

(4) Number of outstanding shares (common stock)1) Number of shares outstanding at the end of the period (including treasury shares)
As of May 31, 2024:

82,300,000 shares

As of Aug. 31, 2023:

82,300,000 shares

As of Aug. 31, 2023:

767,376 shares

2) Number of treasury shares at the end of the period
As of May 31, 2024:

767,377 shares

3) Average number of shares outstanding during the period
Nine months ended May 31, 2024:

81,532,623 shares

Nine months ended May 31, 2023:

81,532,668 shares* The current financial report is not subject to quarterly review 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 3 of theattachments “(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements” for forecast assumptions
and notes of caution for usage.

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

Contents of Attachments
1. Qualitative Information on Quarterly Consolidated Financial Performance2(1) Explanation of Results of Operations

2(2) Explanation of Financial Position

3(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements

3

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income

7

Quarterly Consolidated Statement of Income
For the Nine-month Period

7

Quarterly Consolidated Statement of Comprehensive Income
For the Nine-month Period

8(3) Notes to Quarterly Consolidated Financial Statements

9

Going Concern Assumption

9

Significant Changes in Shareholders’ Equity

9

Segment and Other Information

9

Revenue Recognition

10

Material Subsequent Events

10

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first nine months of the current fiscal year, due to the Russo-Ukraine war and many other sources of
instability worldwide, prices remained high as the rising cost of international logistics was added to the effects ofconcerns involving the supply of energy and food. In Japan, the yen is moving up and down somewhat but
remaining weak, which has an impact on prices, as U.S. and Japanese monetary authorities consider the timing ofa change in their policies.
In Japan, prices may start climbing steadily because of the return of foreign tourists and salary increases, mainly
at large companies.
Beginning with the first quarter of the current fiscal year, the former Bath House segment is moved to the newly
established Other segment. This change was made because the size of the bath house business became much smaller
following the closing of Tokyo Kenko Land Maneki-no-Yu Bath House, which was the main facility of this business.
In addition, food and beverage stores that do not include karaoke and were previously included in the Karaokesegment have been moved to the Other segment. The reclassified operations are four Gindaco Highball stores, one
CAFÉ ECLA and other stores.
The year-on-year figures below have been reclassified into the new segments for comparison purposes.
Business segment performance is as follows.
Karaoke
The core Karaoke business continued to open many stores during the first nine months as 43 stores were added,
including 16 locations in rather less cultivated Osaka and Nagoya regions. In addition, investments were made for
new equipment and other improvements at existing locations. This business has been revising prices of karaoke
services since December 2022 to reflect changes in market conditions. Sales per customer have been lower thanplanned but the number of customers has exceeded the plan. As a result, sales in this business were generally asplanned.
Many activities are under way to accomplish the medium-term corporate vision of “Entertainment as Infrastructure.”
Major initiatives are forms of entertainment other than karaoke, many types of content collaboration, and measures
to upgrade and expand recruiting and training activities. In addition, we have been developing and making progressin introducing DX to enhance operating efficiency and offer new types of entertainment. At some locations, theONOREC VK virtual character karaoke service was installed on a trial basis as a new private entertainment roommeasure. Furthermore, there were actions such as salary increases involving the Koshidaka Workstyle Innovation
Plan in order to strengthen the framework for business operations.
In other countries, store openings in Southeast Asia that resumed in the previous fiscal year continued. During thefirst nine months of the current fiscal year, three Karaoke Manekineko store were opened in Malaysia, one in
Thailand and another in Indonesia.
At the end of May 2024, the number of karaoke locations in Japan was 658, 38 more than at the end of the previous
fiscal year. The number of overseas karaoke stores was 22 in four countries, consisting of four in South Korea, 13
in Malaysia, three in Thailand and two in Indonesia, five more than at the end of the previous fiscal year.
Sales in the Karaoke segment were 44,887 million yen, up 18.3% year on year, and there was a segment profit of
8,104 million yen, an increase of 1,302 million yen, up 19.1% year on year.
Real Estate Management
Occupancy was almost 100% at both of the major properties in this segment, the AQERU Maebashi commerce &business complex and the Fleuret Hanasaki Building in Yokohama. Performance in the first nine months reflected
the absence of revenue from Sport Nagoya, which was sold in the third quarter of the previous fiscal year, and newacquisition expenses.
Sales in the Real Estate Management segment were 1,154 million yen, up 2.0% year on year, and the segment profit
was 60 million yen, a decrease of 142 million yen, down 70.2% year on year.

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

Other
In this segment, there was no revenue from Tokyo Kenko Land Maneki-no-Yu Bath House due to its closing in thefirst quarter of the current fiscal year. The performance of the five food and beverage stores moved to this segmentfrom the Karaoke segment improved.
Sales in the Other segment were 651 million yen, down 40.1% year on year, and the segment loss was 45 million
yen expanded from one year earlier.
Overall, the Koshidaka Group (KOSHIDAKA HOLDINGS Co., LTD. and its consolidated subsidiaries) had salesof 46,384 million yen, up 16.0% year on year. The operating profit was 7,047 million yen, up 18.3% year on year,
the ordinary profit was 7,801 million yen, up 27.0% year on year, and the profit attributable to owners of parent
was 5,367 million yen, down 21.6% year on year.
(2) Explanation of Financial Position
Assets, liabilities, and net assets
AssetsCurrent assets decreased 2,477million yen (20.0%) to 9,896 million yen. This was mainly due to a decrease of
3,527 million yen in cash and deposits and an increase of 1,027 million yen in other current assets.
Property, plant and equipment increased 3,853 million yen (12.0%) to 35,885 million yen. This was mainly due toan increase of 3,601million yen in buildings and structures, net because of new store openings.
Intangible assets increased 142 million yen (28.0%) to 653 million yen.
Investments and other assets increased 1,721 million yen (14.2%) to 13,811 million yen. This was mainly due toincreases of 534 million yen in leasehold and guarantee deposits and 480 million yen in investment securities.
Total non-current assets increased 5,717 million yen (12.8%) to 50,351 million yen.
As a result, total assets increased 3,240 million yen (5.7%) to 60,248 million yen.
Liabilities
Current liabilities decreased 650 million yen (4.7%) to 13,313 million yen. This was mainly due to decreases of
322 million yen in accounts payable-other, 443 million yen in income taxes payable and 107 million yen in othercurrent liabilities, while there was an increase of 241 million yen in deposits received.
Non-current liabilities deceased 360 million yen (2.0%) to 17,288 million yen. This was mainly due to a decreaseof 1,045 million yen in long-term borrowings and an increase of 671 million yen in asset retirement obligations.
As a result, total liabilities decreased 1,010 million yen (3.2%) to 30,602 million yen.
Net assets
Net assets increased 4,251 million yen (16.7%) to 29,645 million yen. This was mainly due to an increase of 4,226
million yen in retained earnings.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements
There is no change in the forecast for the fiscal year that was revised upward when first half results were announced
to reflect the higher than planned performance in the first half. We forecast consolidated net sales of 62,728 million
yen, up 14.8% year on year, operating profit of 9,278 million yen, up 21.0% year on year, ordinary profit of 9,939
million yen, up 28.0% year on year, and profit attributable to owners of parent of 6,753 million yen, down 5.0%
year on year.
We have positioned (1) expansion of the store network and increase in the number of karaoke rooms, (2) provisionof various types of entertainment, and (3) recruitment and training of human resources as our three priority tasks
under our medium-term corporate vision, “Entertainment as Infrastructure” (Entertainment Infrastructure Plan).
Many activities are under way involving these priority tasks. We are a) actively recruiting high-level humanresources and building an organizational structure capable of sustaining growth, b) leveraging DX to create new3

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

customer experiences that transcend the limitations of location and space by fusing real and digital entertainment
and increase the number of Private Entertainment Rooms (PER), and c) developing business models that canbecome new sources of sales and earnings. Our goal is to move forward with these initiatives in order to raise ourcorporate value. In the current fiscal year, we are introducing “ONEREC VK,” a new DX-based PER initiative,
and taking actions to enhance operational efficiency.
The consolidated earnings forecast is based on assumptions judged to be valid and information currently available
at the time the forecasts were established. Actual results may differ significantly from these forecasts for a numberof reasons.

4

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY8/23(As of Aug. 31, 2023)(Thousands of yen)
Third Quarter of FY8/24(As of May 31, 2024)

AssetsCurrent assets
Cash and deposits

8,437,076

4,910,074

Notes and accounts receivable-trade947,213

981,478

Merchandise

169,363

185,184

Raw materials and supplies

384,959

356,6072,438,031

3,465,973(2,575)(2,588)12,374,069

9,896,729

Buildings and structures, net

22,587,377

26,188,758

Vehicles, tools, furniture and fixtures, net

2,792,752

2,969,510

Land

6,627,123

6,713,743

25,02913,552

32,032,282

35,885,563

Goodwill

1,290

542

Software364,271536,647

Other

145,345

116,714

Total intangible assets

510,907653,904

288,714769,617

Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment

Construction in progress
Total property, plant and equipment
Intangible assets

Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Long-term prepaid expenses

10,404

184,194

2,205,026

2,174,383

603,846669,231

Leasehold and guarantee deposits

7,507,557

8,042,040

Deferred tax assets

2,068,785

2,131,945

151,916

427,497

Other
Allowance for doubtful accounts(745,706)(586,969)

Total investments and other assets

12,090,543

13,811,941

44,633,733

50,351,410

57,007,803

60,248,139

Total non-current assets
Total assets

5

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

FY8/23(As of Aug. 31, 2023)(Thousands of yen)
Third Quarter of FY8/24(As of May 31, 2024)

Liabilities
Current liabilities
Notes and accounts payable-trade644,739

610,408

Current portion of long-term borrowings

1,911,240

1,961,240

Accounts payable-other

2,785,751

2,462,867

Accrued expenses

1,610,478

1,702,845

Income taxes payable

2,262,994

1,819,912

Provision for bonuses

347,162

220,299

Deposits received

263,142504,679

Other

4,138,895

4,031,593

Total current liabilities

13,964,404

13,313,847

4,000,000

4,000,000

6,937,210

5,891,280

690,852

673,436

5,137,733

5,808,797

883,089

914,988

17,648,884

17,288,502

31,613,289

30,602,350

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

20,455,244

24,681,778

Treasury shares(105,741)(105,742)

Total shareholders’ equity

25,722,546

29,949,079

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

47,576

149,661

Foreign currency translation adjustment(384,231)(461,574)

Total accumulated other comprehensive income(336,654)(311,912)

Share acquisition rights
Total net assets
Total liabilities and net assets

6

8,622

8,622

25,394,514

29,645,789

57,007,803

60,248,139

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Nine-month Period)(Thousands of yen)First nine months of FY8/23
First nine months of FY8/24(Sep. 1, 2022 – May 31, 2023) (Sep. 1, 2023 – May 31, 2024)
Net sales

39,981,281

46,384,798

Cost of sales

30,004,932

34,301,136

Gross profit

9,976,348

12,083,662

Selling, general and administrative expenses

4,020,742

5,035,931

Operating profit

5,955,606

7,047,730

Non-operating income
Interest and dividend income

31,016

14,469Foreign exchange gains

221,764

196,068

Reversal of allowance for doubtful accounts-

51,773Cancellation income-

504,715

Other

71,610173,122

Total non-operating income

324,391

940,149

Interest expenses

16,47525,258Provision of allowance for doubtful accounts

92,223-Non-operating expenses

Rent expenditure-

105,423

Other

28,25555,416

Total non-operating expenses

136,954

186,098

6,143,043

7,801,782

Gain on sale of non-current assets

4,333,327-

Total extraordinary income

4,333,327-

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets

52,18826,591

Impairment losses

131,364

120,085

Loss on valuation of investment securities

8,023

-

191,575

146,677

Profit before income taxes

10,284,795

7,655,104

Income taxes-current

2,484,597

2,412,742

Income taxes-deferred

956,725(125,628)

Total income taxes

3,441,323

2,287,113

Profit

6,843,472

5,367,991

Profit attributable to owners of parent

6,843,472

5,367,991

Total extraordinary losses

7

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

Quarterly Consolidated Statement of Comprehensive Income(For the Nine-month Period)(Thousands of yen)First nine months of FY8/23
First nine months of FY8/24(Sep. 1, 2022 – May 31, 2023) (Sep. 1, 2023 – May 31, 2024)
Profit

6,843,472

5,367,991

Other comprehensive income
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total other comprehensive income
Comprehensive income

9,966

102,085(69,490)(77,342)(59,524)

24,742

6,783,947

5,392,733

6,783,947

5,392,733

Comprehensive income attributable toComprehensive income attributable to owners of parent

8

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24(3) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
Not applicable.
Segment and Other Information
Segment Information
I. First nine months of FY8/23 (Sep. 1, 2022 – May 31, 2023)
1. Information related to net sales and profit/loss and disaggregation of revenue for each reportable segment
Reportable segment
Real EstateManagement

Karaoke

Total

Other

(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

Net sales
Revenue from contracts
37,935,712
173,723
1,087,238
39,196,674
39,196,674
with customers
Other revenue
784,606
784,606
784,606
External sales
37,935,712
958,330
1,087,238
39,981,281
39,981,281
Inter-segment sales
173,054
173,054(173,054)
and transfers
Total
37,935,712
1,131,385
1,087,238
40,154,336(173,054)
39,981,281
Segment profit (loss)
6,802,262
203,541(24,673)
6,981,130 (1,025,524)
5,955,606
Notes: 1. The -1,025,524 thousand yen adjustment to segment profit (loss) mainly includes general and administrative
expenses that cannot be attributed to reportable segments.
2. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
No applicable items.
II. First nine months of FY8/24 (Sep. 1, 2023 – May 31, 2024)
1. Information related to net sales and profit/loss and disaggregation of revenue for each reportable segment
Reportable segment
Real EstateManagement

Karaoke
Net sales
Revenue from contracts
with customers
Other revenue
External sales
Inter-segment sales
and transfers
Total

44,887,734

207,655

Total

Other

651,471(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)45,746,861-

45,746,861-

637,936-

637,936-

637,936

44,887,734

845,592

651,471

46,384,798-

46,384,798-

308,447-

308,447(308,447)-

44,887,734

1,154,039

651,471

46,693,245(308,447)

46,384,798

Segment profit (loss)
8,104,503
60,716(45,456)
8,119,763 (1,072,032)
7,047,730
Notes: 1. The -1,072,032 thousand yen adjustment to segment profit (loss) mainly includes general and administrative
expenses that cannot be attributed to reportable segments.
2. Segment profit (loss) is adjusted to be consistent with operating profit shown on the quarterly consolidated
statement of income.

2. Information related to impairment losses on non-current assets, goodwill, etc. for each reportable segment
No applicable items.

9

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Third Quarter of FY8/24

3. Information related to revisions for reportable segments
Reportable segments were revised beginning with the first quarter of the current fiscal year. This revision was madefor the purpose of using reportable segments that appropriately show the business activities of the Koshidaka Group.
The goals are to speed up and strengthen strategic initiatives based on the medium-term corporate vision, properly
make decisions about the allocations of resources and manage results of operations, and accurately evaluate thebenefits of synergies and other items. One revision is the move of the Bath House segment to the new Other segment
because the importance of the Bath House segment decreased following the closing on September 3, 2023 of Tokyo
Kenko Land Maneki-no-Yu Bath House, its main facility. In addition, business activities other than karaoke (note1) that were included in the Karaoke segment have been moved to the Other segment.
Segment information for the first nine months of FY8/23 has been restated for consistency with the revised
segments.
Note: Business activities other than karaoke that were previously included in the Karaoke segment: Gindaco
Highball, Canop, CAFÉ ECLA
Revenue Recognition
Information related to disaggregation of revenue from contracts with customers is described in the Segment andOther Information section.
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.

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