April 11, 2023

Summary of Consolidated Financial Results
for the Second Quarter of the Fiscal Year Ending August 31, 2023
(Six Months Ended February 28, 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: +81-3-6403-5710
Scheduled date of filing of Quarterly Report:
April 12, 2023
Scheduled date of payment of dividend:
May 10, 2023
Preparation of supplementary materials for quarterly financial results: Yes
Holding of quarterly financial results meeting:Yes (for analysts and institutional investors)
Stock code:
Representative:
Contact:(All amounts are rounded down to the nearest million yen)

1. Consolidated Financial Results for the Second Quarter Ended February 28, 2023 (Sep. 1, 2022 – Feb. 28, 2023)(1) Consolidated results of operations(Percentages are year-on-year changes)
Net sales

Operating profit

Million yen%

Million yen%

Million yen

25,60954.9
3,525
Six months ended Feb. 28, 2023
16,53336.5
275
Six months ended Feb. 28, 2022
Note: Comprehensive income (million yen)Six months ended Feb. 28, 2023:
2,481
Six months ended Feb. 28, 2022:
1,831
Net income per share Diluted net income per share
Six months ended Feb. 28, 2023
Six months ended Feb. 28, 2022

Profit attributable toowners of parent

Ordinary profit

Yen

Yen

30.66
23.10

28.15
-

%

Million yen

%

3,683
23.9
2,973
(up 35.5%)
(-%)

2,499
1,883

32.7
-

(2) Consolidated financial position
Total assets
As of Feb. 28, 2023
As of Aug. 31, 2022
Reference: Shareholders’ equity (million yen)

Net assets

Equity ratio

Million yen

Million yen

52,581
47,273As of Feb. 28, 2023:

21,324
19,50821,31540.5
41.2
As of Aug. 31, 2022: 19,500%

1Q-end2Q-endDividend per share
3Q-endYear-end

2. Dividends

Yen

Fiscal year ended Aug. 31, 2022
Fiscal year ending Aug. 31, 2023
Fiscal year ending Aug. 31, 2023 (forecast)
Note: Revisions to the most recently announced dividend forecast: None

Total

Yen

Yen

Yen

Yen

4.00
5.00

-

4.00

8.00

-

5.00

10.00

3. Consolidated Earnings Forecast for the Fiscal Year Ending August 31, 2023 (Sep. 1, 2022 – Aug. 31, 2023)
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
53,83041.7
7,570 243.2
7,700
Note: Revisions to the most recently announced earnings forecast: Yes

%

44.4

7,470

105.0

91.62

* 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: Yes
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 Feb. 28, 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 Feb. 28, 2023:

767,335 shares

3) Average number of shares outstanding during the period
Six months ended Feb. 28, 2023:

81,532,681 shares

Six months ended Feb. 28, 2022:

81,532,704 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 4 of
the attachments “(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 Second Quarter of FY8/23

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

4

2. Quarterly Consolidated Financial Statements and Notes

5(1) Quarterly Consolidated Balance Sheet

5(2) Quarterly Consolidated Statements of Income and Comprehensive Income7(3) Quarterly Consolidated Statements of Cash Flows

9(4) Notes to Quarterly Consolidated Financial Statements

10

Going Concern Assumption

10

Significant Changes in Shareholders’ Equity

10

Changes in Accounting Policies

10

Segment and Other Information

11

Business Combinations

12

Revenue Recognition

12

Material Subsequent Events

13

1

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first half of the current fiscal year, the Japanese economy was largely at a standstill against a backdrop
several concerns, such as continuing inflation caused by shortages of energy and food products in many countries
due to the protracted Ukraine crisis. The depreciation of the yen caused by interest rate hikes in the U. S. also
spurred price rises in Japan. However, the pace of interest rate hikes in the U. S. has now slowed. Regarding the
pandemic, though the 8th wave had impact on consumer behavior as it constrained consumer movement, thepandemic seems to be ending as there were no moves toward cutting working hours and border control measures
were relaxed. Due to these factors, there has been reactionary rebound in consumption in certain sectors, such as
tourism, since the beginning of this year.
Business segment performance was as follows.
Karaoke
The karaoke business started on a positive note in the first half of the current fiscal year. Although sales weresluggish in the peak season from late-November through December as consumers refrained from going out due tothe 8th wave of the pandemic, same-store sales rebounded and stayed above the pre-pandemic level in January
and February as the pandemic seemed to be petering out. Aggressive store openings during the pandemic
continued in the first half with 28 new Karaoke Manekineko locations in Japan.
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 PlayGarden (an amusement facility with billiards, darts and other games) and Mirror Pon! (useof karaoke screen and speakers to watch personal content), many types of content collaboration, and measures to
upgrade and expand recruiting and training activities. In addition, we have been preparing to develop andintroduce DX to enhance operating efficiency and offer new types of entertainment.
In other countries, we restarted opening new stores in Southeast Asia, three in Malaysia and two in Thailand
during the first half.
At the end of February 2023, the number of karaoke locations in Japan was 604, 22 more than at the end of theprevious fiscal year. The number of overseas karaoke stores was 16 in four countries, consisting of four in South
Korea, nine in Malaysia, two in Thailand and one in Indonesia, five more than at the end of the previous fiscal
year.
Sales in the Karaoke segment were 24,442 million yen, up 56.1% year on year, and there was a profit of 4,038
million yen, an increase of 3,417 million yen, up 550.5% year on year.
Bath HouseAs in the Karaoke segment, this segment was also affected by the 8th wave of the pandemic. But customer traffic
picked up in January and February. On the other hand, soaring utility costs put pressure on profits.
Sales in the Bath House segment were 524 million yen, up 20.0% year on year, and the segment profit increased
56 million yen from one year earlier to 10 million yen.
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 as we actively leased properties owned by thecompany. In addition, we have acquired properties in preparation for future new store openings. Besides, we
expect an extraordinary profit of 4,350 million yen in the third quarter as a decision has been made in the firsthalf to sell “Sport Nagoya,” a property owned by our subsidiary, on March 31, 2023.
Sales in the Real Estate Management segment were 753 million yen, up 40.4% year on year, and the segment
profit was 129 million yen, an increase of 60 million yen, up 88.3% year on year.

2

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

Overall, the Koshidaka Group (KOSHIDAKA HOLDINGS Co., LTD. and its consolidated subsidiaries) had salesof 25,609 million yen, up 54.9% year on year. The operating profit was 3,525 million yen, 12.8 times that of thesame period of the previous fiscal year, the ordinary profit was 3,683 million yen, up 23.9% year on year, and the
profit attributable to owners of parent was 2,499 million yen, up 32.7% year on year.
(2) Explanation of Financial Position
1) Assets, liabilities, and net assets
AssetsCurrent assets decreased 1,241 million yen (12.5%) to 8,669 million yen. This was mainly due to a decrease of
1,452 million yen in cash and deposits.
Property, plant and equipment increased 5,321 million yen (19.6%) to 32,423 million yen. This was mainly due toincreases of 3,113 million yen in land and 1,859 million yen in buildings and structures .
Intangible assets increased 43 million yen (10.0%) to 483 million yen.
Investments and other assets increased 1,183 million yen (12.1%) to 11,004 million yen. This was mainly due toincreases of 871 million yen in leasehold and guarantee deposits, and 565 million yen in long-term prepaid
expenses.
Total non-current assets increased 6,549 million yen (17.5%) to 43,911 million yen.
As a result, total assets increased 5,307 million yen (11.2%) to 52,581 million yen.
Liabilities
Current liabilities increased 3,345 million yen (34.7%) to 12,989 million yen. This was mainly due to an increaseof 3,198 million yen in short-term borrowings.
Non-current liabilities increased 146 million yen (0.8%) to 18,267 million yen. This was mainly due to anincrease of 497 million yen in asset retirement obligations and a decrease of 356 million yen in long-termborrowings.
As a result, total liabilities increased 3,492 million yen (12.6%) to 31,256 million yen.
Net assets
Net assets increased 1,815 million yen (9.3%) to 21,324 million yen. This was mainly due to an increase of 1,834
million yen in retained earnings.
2) Cash flows
Cash and cash equivalents (hereinafter “net cash”) at the end of the second quarter of the current fiscal year
decreased 1,443 million yen from the end of the previous fiscal year to 4,936 million yen.
The cash flow components during the first half and the main reasons for changes are as described below.
Cash flows from operating activities
Net cash provided by operating activities totaled 4,936 million yen, compared with 6,341 million yen provided in
the same period of the previous fiscal year. Main factors include profit before income taxes of 3,638 million yen,depreciation of 1,816 million yen, and income taxes paid of 652 million yen.
Cash flows from investing activities
Net cash used in investing activities totaled 8,970 million yen, compared with 4,901 million yen used in the same
period of the previous fiscal year. Main factors include purchase of property, plant and equipment of 7,367
million yen, payments of leasehold and guarantee deposits of 889 million yen and loan advances of 613 million
yen.

3

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

Cash flows from financing activities
Net cash provided by financing activities totaled 2,419 million yen, compared with 1,364 million yen used in thesame period of the previous fiscal year. Main factors include a net increase of 3,198 million yen in short-termborrowings, proceeds from long-term borrowings of 700 million yen, repayments of long-term borrowings of
1,153 million yen and dividends paid of 326 million yen.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements
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 continue.
However, policies to restrict movement of people that were introduced to fight the successive outbreaks of thepandemic and had a significant impact on consumer behavior over the past three years are being lifted. In
particular, during the 7th and 8th waves of the pandemic, we seem to be moving toward the period of having tolive “with Corona” or living in a “post-corona” world as no requests were issued to restaurants, including karaoke
stores, to close or shorten operating hours. etc. Border controls were also eased, and on May 8, 2023 COVID will
be reclassified to infection category V, the same as seasonal influenza, etc., under the Infection Control Law.
Demand had been suppressed due to policy measures to contain the pandemic and by voluntary restraints byconsumers during the pandemic. We are entering the second half of the year with the feeling that this pent -up
demand will emerge in earnest.
Since we had assumed at the time of releasing the initial forecast that the pandemic would subside and that areactionary demand surge would emerge, we have not changed the initial forecast for net sales, operating profit,and ordinary profit for the second half of the fiscal year. But we revised the fiscal year forecast upward by theamount the first half results exceeded the initial forecast. The net income forecast is also revised upward to factor
in the gain on sale of non-current assets in the second half, which was announced on February 24, and the amountby which the first half results exceeded the initial forecast.
Overall, we forecast consolidated net sales of 53,830 million yen, up 41.7%, operating profit of 7,570 million yen,
up 243.2% year on year, ordinary profit of 7,700 million yen, up 44.4% year on year, and profit attributable toowners of parent of 7,470 million yen, up 105.0% year on year.
We have positioned (1) expansion of the store network and increase in the number of karaoke rooms, (2)provision of various types of entertainment, and (3) recruitment and training of human resources as our threepriority tasks under our medium-term management vision, "Entertainment Infrastructure Plan". Toward thesegoals, we are (1) actively recruiting of high-level human resources and building an organizational structure
capable of sustaining growth, (2) leveraging DX to Create new customer experiences that transcend thelimitations of location and space by fusing real and digital entertainment and increase the number of Private
Entertainment Rooms (PER), and (3) developing "well-tainment", a new business model, that combinesentertainment and wellness. To reap the benefits of the capital and business alliance with Advantage Advisors, weare introducing in the current fiscal year "Metacara", a new DX-based PER initiative, and taking actions toenhance operating efficiency.

4

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

2. Quarterly Consolidated Financial Statements and Notes(1) Quarterly Consolidated Balance Sheet
FY8/22(As of Aug. 31, 2022)(Thousands of yen)
Second Quarter of FY8/23(As of Feb. 28, 2023)

AssetsCurrent assets
Cash and deposits

6,977,443

5,525,400

525,866

690,133

Merchandise

23,707

178,609

Raw materials and supplies

240,144

281,164

Other

2,161,669

1,996,750

Allowance for doubtful accounts(17,677)(2,545)

Total current assets

9,911,154

8,669,512

Buildings and structures, net

20,405,196

22,264,914

Vehicles, tools, furniture and fixtures, net

2,196,998

2,542,954

Land

4,490,814

7,604,482

9,010

11,61627,102,019

32,423,968

Goodwill

4,915

2,861

Software223,418

230,691

Other

210,914249,562

Total intangible assets

439,248

483,115

141,677

196,885

Notes and accounts receivable-tradeNon-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

10,2845,330

1,397,800

1,726,800

44,866

610,643

Leasehold and guarantee deposits

6,045,882

6,917,724

Deferred tax assets

2,563,537

1,981,659

182,386

151,774(565,660)(586,317)

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

59,820,774

11,004,501

37,362,042

43,911,585

47,273,196

52,581,097

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23(Thousands of yen)
Second Quarter of FY8/23(As of Feb. 28, 2023)

FY8/22(As of Aug. 31, 2022)
Liabilities
Current liabilities
Notes and accounts payable-trade443,200

480,593-

3,198,730

Current portion of long-term borrowings

2,188,243

2,091,577

Accounts payable-other

1,744,506

1,974,330

Accrued expenses

Short-term borrowings

1,377,403

1,337,110

Income taxes payable

736,756

639,545

Provision for bonuses

229,570

324,538

Deposits received

56,297

247,823

Other

2,867,573

2,695,129

Total current liabilities

9,643,551

12,989,378

4,000,000

4,000,000

8,744,700

8,388,080

Non-current liabilities
Convertible-bond-type bonds with share acquisitionrightsLong-term borrowings
Deferred tax liabilities
Asset retirement obligations
Other

233,336

250,562

4,225,294

4,723,107

917,666

905,631

18,120,998

18,267,380

27,764,549

31,256,759

Share capital

2,070,257

2,070,257

Capital surplus

3,302,786

3,302,786

Retained earnings

14,423,589

16,257,791

Treasury shares(105,662)(105,695)

Total shareholders’ equity

19,690,970

21,525,139

24,18933,049Foreign currency translation adjustment(215,134)(242,473)

Total accumulated other comprehensive income(190,945)(209,423)

8,622

8,622

19,508,647

21,324,337

47,273,196

52,581,097

Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity

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

Share acquisition rights
Total net assets
Total liabilities and net assets

6

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Six-month Period)First six months of FY8/22(Sep. 1, 2021 – Feb. 28, 2022)(Thousands of yen)First six months of FY8/23(Sep. 1, 2022 – Feb. 28, 2023)

Net sales

16,533,456

25,609,214

Cost of sales

14,407,372

19,529,911

Gross profit

2,126,084

6,079,302

Selling, general and administrative expenses

1,850,939

2,554,199

275,1443,525,102

Operating profit
Non-operating income
Interest and dividend income

9,046

17,657

Foreign exchange gains

62,563

147,858

2,637,429-

Subsidy income
Other63,85559,5602,772,895

225,076

Interest expenses

29,542

20,737

Provision of allowance for doubtful accounts

38,66939,289

Other

5,874

6,600

Total non-operating expenses

74,086

66,6272,973,952

3,683,551

Gain on sale of non-current assets

84,224296

Total extraordinary income

84,224296

Loss on retirement of non-current assets

10,73035,736

Impairment losses

57,113

2,018

Loss on valuation of investment securities

22,508

8,023

Total non-operating income
Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses

Total extraordinary losses

90,35145,7782,967,825

3,638,070

Income taxes-current

540,935

543,048

Income taxes-deferred

543,094595,192

Total income taxes

1,084,029

1,138,241

Profit

1,883,795

2,499,828

Profit attributable to owners of parent

1,883,795

2,499,828

Profit before income taxes

7

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

Quarterly Consolidated Statement of Comprehensive Income(For the Six-month Period)First six months of FY8/22(Sep. 1, 2021 – Feb. 28, 2022)(Thousands of yen)First six months of FY8/23(Sep. 1, 2022 – Feb. 28, 2023)

1,883,795

2,499,828

ProfitOther comprehensive income
Valuation difference on available-for-sale securities(3,230)8,860

Foreign currency translation adjustment(48,976)(27,338)

Total other comprehensive income(52,206)(18,477)

1,831,588

2,481,350

1,831,588

2,481,350

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

8

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23(3) Quarterly Consolidated Statement of Cash Flows(Thousands of yen)First six months of FY8/22
First six months of FY8/23(Sep. 1, 2021 – Feb. 28, 2022) (Sep. 1, 2022 – Feb. 28, 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
Loss (gain) on sale of property, plant and equipment
Loss on retirement of non-current assets
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, and accrued
expenses
Other, net

2,967,825
1,690,963
57,113
2,373
92,79838,669(9,046)29,542(84,224)
10,730(240,816)(20,617)
1,574,800
110,087

3,638,070
1,816,175
2,018
2,054
94,968
4,191(17,657)
20,737(296)
35,736(157,470)(65,591)(3,158)36,555110,919

25,28989,146

161,010

Subtotal

6,420,265

5,592,634

Interest and dividends received
Interest paid
Income taxes paid

9,046
(29,221)(58,743)

17,657(20,899)(652,894)

Net cash provided by (used in) operating activities

6,341,346

4,936,497(4,774,700)
248,770(46,423)
6,760(374,484)
61,114
3,991(27,015)(7,367,241)
50,741(124,809)(50,000)
5,520(889,945)
13,458(613,476)
5,323
(40)

Net cash provided by (used in) investing activities(4,901,987)(8,970,469)

Cash flows from financing activities
Net increase (decrease) in short-term borrowings
Proceeds from long-term borrowings
Repayments of long-term borrowings
Purchase of treasury shares
Dividends paid

(2,500,000)
2,872,000(1,573,752)(163,065)

3,198,730
700,000(1,153,286)(33)(326,130)

Net cash provided by (used in) financing activities(1,364,817)

2,419,279

Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Purchase of investment securities
Proceeds from sale 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

Effect of exchange rate change on cash and cash equivalents

1,539

157,633

Net increase (decrease) in cash and cash equivalents

76,081(1,457,059)

5,171,157

6,379,401-

13,8785,247,238

4,936,220

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

9

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23(4) Notes to Quarterly Consolidated Financial Statements
Going Concern Assumption
Not applicable.
Significant Changes in Shareholders’ Equity
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 beginningof the first quarter of the fiscal year, and has applied the new accounting policies set forth by the Implementation
Guidance on Accounting Standard for Fair value Measurement prospectively in accordance with the transitional
treatment prescribed 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 quarterly consolidated financial
statements.

10

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

Segment and Other Information
Segment Information
I. First six months of FY8/22 (Sep. 1, 2021 – Feb. 28, 2022)
1. Information related to net sales and profit/loss and disaggregation of revenue for each reportable segment
Reportable segment
KaraokeBath House

Real EstateManagement

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

Net sales
Revenue from contracts
15,660,597
437,655
1,199
16,099,452
16,099,452
with customers
Other revenue
434,004
434,004
434,004
External sales
15,660,597
437,655435,203
16,533,456
16,533,456
Inter-segment sales
101,295
101,295(101,295)
and transfers
Total
15,660,597
437,655
536,499
16,634,752(101,295)
16,533,456
Segment profit (loss)
620,899(46,031)
68,539643,407(368,263)
275,144
Notes: 1. The -368,263 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 six months of FY8/23 (Sep. 1, 2022 – Feb. 28, 2023)
1. Information related to net sales and profit/loss and disaggregation of revenue for each reportable segment
Reportable segment
KaraokeBath House

Real EstateManagement

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

Net sales
Revenue from contracts
24,442,358
524,985
87,04425,054,388
25,054,388
with customers
Other revenue
554,825554,825554,825
External sales
24,442,358
524,985
641,870
25,609,214
25,609,214
Inter-segment sales
111,373
111,373(111,373)
and transfers
Total
24,442,358
524,985
753,244
25,720,588(111,373)
25,609,214
Segment profit
4,038,690
10,648129,069
4,178,408(653,305)
3,525,102
Notes: 1. The -653,305 thousand yen adjustment to segment profit mainly includes general and administrative expenses thatcannot be attributed to reportable segments.
2. Segment profit is adjusted to be consistent with operating profit shown on the quarterly consolidated statement ofincome.

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

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

Business Combinations
Transaction under common control
Absorption-type merger of an unconsolidated subsidiary by a consolidated subsidiary
1. Summary of business combination(1) Name and business activities of companies involving business combination
a. Merging company
Name:

KOSHIDAKA PRODUCTS Co., LTD.

Business activities:

Ownership, operation and management of the Group’s real estate holdings

b. Company being merged
Name:

KP Management Co., Ltd.

Business activities:

Operation and management of the Group’s real estate holdings(2) Date of business combination
December 1, 2022
(3) Method of business combination
KP Management, which was dissolved, was absorbed by KOSHIDAKA PRODUCTS, which was the surviving
company.
(4) Name of the company after business combination
KOSHIDAKA PRODUCTS Co., LTD.
(5) Other information concerning the business combination
The Company merged Koshidaka Products, a consolidated subsidiary, and KP Management, a
non-consolidated subsidiary, to restructure its business, since the latter had co mpleted its function as a facility
management company.
2. Summary of accounting method
Accounting methods as a transaction under common control are based on “Accounting Standard for Business
Combination (ASBJ Statement No. 21, January 16, 2019)” and “Guidance on Accounting Standard for Business
Combinations and Accounting Standard for Business Divestitures (ASBJ Guidance No. 10, January 16, 2019).”

Revenue Recognition
Information related to disaggregation of revenue from contracts with customers is described in the Segment andOther Information section.

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the Second Quarter of FY8/23

Material Subsequent Events
Transfer of consolidated subsidiary’s assets
The Company's Board of Directors on February 24, 2023 approved a resolution to transfer certain non-current
assets owned by Koshidaka Products, a consolidated subsidiary. The contract was signed on the same day and thetransfer of the property was completed on March 31, 2023.
1. Reason for the transfer
The Group has decided to transfer the non-current assets listed below following a review of its asset holdings forthe purpose of efficient utilization of the Group’s management resources and strengthening of its financial
position.
2. Details of assets to be transferred
a.
b.
c.

Name of the assets
Land and building held by the Company in Nagoya, Aichi prefecture
Location
4511 Shinsakae 2 Cho-me, Naka-ku, Nagoya City, Aichi
Area of land
5,917.55m 2
Total floor space of thed. building
15,802.65m 2
e. Asset type
Rental real estatef. Gain on transfer
4.35 billion yen (estimated amount)*The gain on transfer is the estimated amount of the transfer price less the book value and various costs
related to the transfer.
3. Overview of the transferee
The transferee is a Japanese corporation. The transferee does not have any capital, personal o r business
relationship with the Company, and is not a related party of the Company.
4. Effect of the subsequent event on consolidated financial results
The gain of 4.35 billion yen from the transfer of the aforementioned non-current assets will be recorded as
extraordinary income in the consolidated financial statements for the third quarter of the fiscal year ending
August 31, 2023.

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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