January 10, 2024

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending August 31, 2024
(Three Months Ended Nov. 30, 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, Senior Executive Director
Tel: +81-570-666-425
Scheduled date of filing of Quarterly Report:
January 11, 2024
Scheduled date of payment of dividend:
Preparation of supplementary materials for quarterly financial results: Yes
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 First Quarter Ended November 30, 2023 (Sep. 1, 2023 – Nov. 30, 2023)(1) Consolidated results of operations(Percentages are year-on-year changes)
Net sales
Million yen

Operating profit%

Million yen%

13,182
16.9
573
7.3
1,021
90.5
Three months ended Nov. 30, 2023
11,27877.0
534
535
Three months ended Nov. 30, 2022
Note: Comprehensive income (million yen)Three months ended Nov. 30, 2023: 742 (up 67.7%)
Three months ended Nov. 30, 2022: 442 (-%)
Net income per share Diluted net income per share

787
327

140.8
-

Three months ended Nov. 30, 2023
Three months ended Nov. 30, 2022%

Million yen

Profit attributable toowners of parent

Ordinary profit%

Million yen

Yen

Yen

9.66
4.01

8.83
3.69

(2) Consolidated financial position
Total assets
As of Nov. 30, 2023
As of Aug. 31, 2023
Reference: Shareholders’ equity (million yen)

Net assets

Equity ratio

Million yen

Million yen%

54,54357,007
As of Nov. 30, 2023:

25,56625,39425,55746.9
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: None

Dividend per share
3Q-endYear-end

Total

Yen

Yen

Yen

Yen

5.00

-

7.00

12.00

7.00

-

7.00

14.00

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

First half
29,826
16.5
4,561
29.4
4,514
Full year
61,976
13.4
9,004
17.4
8,910
Note: Revisions to the most recently announced earnings forecast: None

%

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) 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 Nov. 30, 2023:

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 Nov. 30, 2023:

767,376 shares

3) Average number of shares outstanding during the period
Three months ended Nov. 30, 2023:

81,532,624 shares

Three months ended Nov. 30, 2022:

81,532,694 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 First 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(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 First Quarter of FY8/24

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, the business climate was impacted by the prolonged Ukraine conflict
and the Israel-Hamas war in the Middle East, with no near-term end to either crisis in sight. Concerns persist about
supplies of food and energy. The yen ended the fourth quarter slightly higher against the U.S. dollar following a
low point reached earlier as observers wait to see when Japanese and U.S. central banks will revise their policies.
Overall, uncertainty involving the Ukraine and Israel conflicts, shortages of food and energy, the yen’s weakness,and other problems are likely to continue for a long time.
Business segment performance is as follows. 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 ofthe bath house business became much smaller following the closing of Tokyo Kenko Land Maneki-no-Yu BathHouse, 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 Karaoke segment have been mo ved to the Other segment. The
reclassified operations are four Gindaco Highball stores, one CAFÉ ECLA store and two locations using the new
Canop business model.
The prior-year figures below have been reclassified into the new segments for comparison purposes.
KaraokeIn the core karaoke business, the opening of many new locations even during the pandemic gave this business a
powerful position relative to that of competitors to benefit from revenge consumption. Sales from revenge
consumption were initially strong in shopping districts in central Tokyo. Subsequently, revenge consumption
expanded to other areas. Prices were revised in December 2022 and early in 2023 and adjustments were madesubsequently to reflect demand and the actions of competitors. The result of all these activities was a larger thanplanned number of customers in the first quarter but lower than planned sales per customer. During the first quarter,
the addition of new locations continued prior to the year-end period when demand is highest. There were 12 new
Karaoke Manekineko locations during the first quarter along with expenditures for new equipment and otherimprovements at existing locations.
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 Workstyle Innovation Plan in orderto strengthen the framework for business operations.
In other countries, store openings in Southeast Asia, resumed in the previous fiscal year, continued. Two Karaoke
Manekineko stores were opened in Malaysia one in Thailand and one in Indonesia during the first quarter of thecurrent fiscal year.
At the end of November 2023, the number of karaoke locations in Japan was 632, 12 more than at the end of theprevious fiscal year. The number of overseas karaoke stores was 21 in four countries, consisting of four in South
Korea, 12 in Malaysia, three in Thailand and two in Indonesia, four more than at the end of the previous fiscal year.
Sales in the Karaoke segment were 12,707 million yen, up 19.3% year on year, and there was a segment profit of
1,000 million yen, up 25.0% 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. First quarter performance reflected the absenceof revenue from Sport Nagoya, which was sold in the third quarter of the previous fiscal year, and new acquisition
expenses.
Sales in the Real Estate Management segment were 332 million yen, down 3.7% year on year, and the segment loss

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

was 3 million yen, down from a profit one year earlier.
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 208 million yen, down 38.2% year on year, and the segment loss was 60 million
yen expanded from one year earlier.
Results of operations of the Koshidaka Group (KOSHIDAKA HOLDINGS Co., LTD. and its consolidated
subsidiaries) for the first quarter were as follows.
Net sales:
Operating profit:
Ordinary profit:
Profit attributable to owners of parent:

13,182 million yen
573 million yen
1,021 million yen
787 million yen(up 16.9% year on year)(up 7.3% year on year)(up 90.5% year on year)(up 140.8% year on year)(2) Explanation of Financial Position
AssetsCurrent assets decreased 4,131 million yen (33.4%) to 8,243 million yen. This was mainly due to a decrease of
4,444 million yen in cash and deposits mainly due to income taxes paid and cash dividends paid.
Property, plant and equipment increased 1,202 million yen (3.8%) to 33,234 million yen. This was mainly due toan increase of 993 million yen in buildings and structures, net because of new store openings.
Intangible assets increased 29 million yen (5.8%) to 540 million yen.
Investments and other assets increased 435 million yen (3.6%) to 12,525 million yen. This was mainly due to anincrease of 368 million yen in leasehold and guarantee deposits because of new store openings.
Total non-current assets increased 1,666 million yen (3.7%) to 46,300 million yen.
As a result, total assets decreased 2,464 million yen (4.3%) to 54,543 million yen.
Liabilities
Current liabilities decreased 2,736 million yen (19.6%) to 11,227 million yen. This was mainly due to decreases of
1,943 million yen in income taxes payable and 697 million yen in other current liabilities.
Non-current liabilities increased 100 million yen (0.6%) to 17,749 million yen. This was mainly due to a decreaseof 65 million yen in long-term borrowings and an increase of 206 million yen in asset retirement obligations.
As a result, total liabilities decreased 2,636 million yen (8.3%) to 28,977 million yen.
Net assets
Net assets increased 172 million yen (0.7%) to 25,566 million yen. This was mainly due to an increase of 216
million yen in retained earnings.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements
In addition to the ongoing conflict in Ukraine, the conflict between Israel and Hamas in the Palestinian Gaza Stripand the expansion and intensification of hostilities in the Middle East show no signs of ending in the near future.
As a result, global uncertainty will continue due to inflation following shortages of energy, food and other items
caused by these conflicts, worries about slowing economic growth in China because of the real estate sector
downturn, and other reasons. In Japan, revenge consumption following the pandemic is occurring nationwide. We
are well prepared for the year-end peak demand period which is expected to return to normal for the first time inseveral years.

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

Since we had assumed at the time of releasing the initial forecast that a revenge consumption would emerge, we
maintain the initial forecast announced. Overall, we forecast consolidated net sales of 61,976 million yen, up 13.4%
year on year, operating profit of 9,004 million yen, up 17.4% year on year, ordinary profit of 8,910 million yen, up
14.7% year on year, and profit attributable to owners of parent of 5,791 million yen, down 18.5% 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).
Toward these goals, we are actively recruiting high-level human resources and building an organizational structure
capable of sustaining growth, leveraging DX to create new customer experiences that transcend the limitations oflocation and space by fusing real and digital entertainment and increase the number of Private Entertainment Rooms(PER), and developing “well-tainment,” a new business model, that combines entertainment and wellness. Our
goal is to move forward with these initiatives in order to raise our corporate value. We are introducing in the current
fiscal year “Metacara” and “ONEREC VK,” two new DX-based PER initiatives, and taking actions to enhance
operating 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.

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First 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)First Quarter of FY8/24(As of Nov. 30, 2023)

AssetsCurrent assets
Cash and deposits

8,437,076

3,992,934

Notes and accounts receivable-trade947,213851,759

Merchandise

169,363

172,715

Raw materials and supplies

384,959

371,2842,438,031

2,856,956(2,575)(2,589)12,374,069

8,243,060

Buildings and structures, net

22,587,377

23,581,334

Vehicles, tools, furniture and fixtures, net

2,792,752

2,892,521

Land

6,627,123

6,627,123

25,029133,782

32,032,282

33,234,761

Goodwill

1,290

734

Software364,271372,481Other

145,345

167,138

Total intangible assets

510,907

540,355

288,714305,412

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

184,0622,205,026

2,116,225

603,846

590,541

Leasehold and guarantee deposits

7,507,557

7,876,521

Deferred tax assets

2,068,785

1,932,750

151,916

151,843

Other
Allowance for doubtful accounts(745,706)(631,780)

Total investments and other assets

12,090,543

12,525,577

44,633,733

46,300,693

57,007,803

54,543,753

Total non-current assets
Total assets

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

FY8/23(As of Aug. 31, 2023)(Thousands of yen)First Quarter of FY8/24(As of Nov. 30, 2023)

Liabilities
Current liabilities
Notes and accounts payable-trade644,739

653,607

Current portion of long-term borrowings

1,911,240

1,993,240

Accounts payable-other

2,785,751

2,818,679

Accrued expenses

1,610,478

1,568,343

Income taxes payable

2,262,994

319,803

Provision for bonuses

347,162

178,476

Deposits received

263,142

254,183

Other

4,138,895

3,441,162

Total current liabilities

13,964,404

11,227,496

4,000,000

4,000,000

6,937,210

6,871,900

690,852

655,925

5,137,733

5,343,894

883,089

877,981

17,648,884

17,749,700

31,613,289

28,977,196

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

20,672,112

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

Total shareholders’ equity

25,722,546

25,939,414

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

47,57652,540Foreign currency translation adjustment(384,231)(434,020)

Total accumulated other comprehensive income(336,654)(381,480)

Share acquisition rights
Total net assets
Total liabilities and net assets

6

8,622

8,622

25,394,514

25,566,556

57,007,803

54,543,753

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First Quarter of FY8/24(2) Quarterly Consolidated Statements of Income and Comprehensive Income
Quarterly Consolidated Statement of Income(For the Three-month Period)(Thousands of yen)First three months of FY8/23 First three months of FY8/24(Sep. 1, 2022 – Nov. 30, 2022) (Sep. 1, 2023 – Nov. 30, 2023)
Net sales

11,278,683

13,182,967

Cost of sales

9,427,090

11,031,857

Gross profit

1,851,592

2,151,110

Selling, general and administrative expenses

1,317,417

1,577,877

534,175

573,233

Operating profit
Non-operating income
Interest and dividend income

8,069

2,543

Foreign exchange gains

28,336

155,318

Cancellation income-

221,477

Other

33,928124,111

Total non-operating income

70,335

503,450

Interest expenses

9,130

8,092

Provision of allowance for doubtful accounts

57,186

2,318-

34,632

Other

2,220

10,399Total non-operating expenses

68,53755,443535,972

1,021,241

Gain on sale of non-current assets

296-

Total extraordinary income

296-

12,406

4,674

Non-operating expenses

Rent expenditure

Ordinary profit
Extraordinary income

Extraordinary losses
Loss on retirement of non-current assets
Impairment losses-

37,01812,406

41,692523,863979,548

Income taxes-current

39,07893,033

Income taxes-deferred

157,719

98,917

Total income taxes

196,797

191,951

Profit327,065

787,596

Profit attributable to owners of parent

327,065

787,596

Total extraordinary losses
Profit before income taxes

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)(Thousands of yen)First three months of FY8/23 First three months of FY8/24(Sep. 1, 2022 – Nov. 30, 2022) (Sep. 1, 2023 – Nov. 30, 2023)
Profit327,065

787,596

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

3,418

4,963

112,315(49,789)

115,733(44,825)

442,798

742,770

442,798

742,770

Comprehensive income attributable toComprehensive income attributable to owners of parent

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First 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 three months of FY8/23 (Sep. 1, 2022 – Nov. 30, 2022)
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

10,650,505

752

Total

Other

338,224(Thousands of yen)Amounts shown on
Adjustment quarterly consolidated(Note 1)statement of income(Note 2)

10,989,482-

10,989,482-

289,200-

289,200-

289,200

10,650,505

289,953

338,224

11,278,683-

11,278,683-

55,686-

55,686(55,686)-

10,650,505

345,640

338,224

11,334,370(55,686)

11,278,683

Segment profit (loss)
801,041
81,042(23,945)858,138(323,963)
534,175
Notes: 1. The -323,963 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 three months of FY8/24 (Sep. 1, 2023 – Nov. 30, 2023)
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

Total

Other

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

12,707,332

64,599208,964

12,980,895-

12,980,895-

202,071-

202,071-

202,071

12,707,332

266,671

208,964

13,182,967-

13,182,967-

66,266-

66,266(66,266)-

12,707,332

332,938

208,964

13,249,234(66,266)

13,182,967

Segment profit (loss)
1,000,933(3,049)(60,687)
937,196(363,962)
573,233
Notes: 1. The -363,962 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.

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First 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 three months of FY8/23 has been restated for consistency with the revised
segments.
Note 1: 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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