KOSHIDAKA HOLDINGS Co., LTD.
(TSE Prime Market 2157)

Results of Operations
for the Fiscal Year Ended August 2023
(FY8/2023)
October 12, 2023

Results of Operations for FY8/2023

Agenda1 Executive Summary

2 FY8/2023 Financial Summary
3 FY8/2024 Consolidated Forecast
4 Shareholder Return Policy
5 Strategies and Actions2

1. Executive Summary

1. Executive Summary

FY8/2023 Overview• Record-high sales and operating profit (*after the spin-off of Curves)• Continued to open new stores at prime shopping areas/near railway stations and started
expansion of store network in the Kinki region (Around Osaka Area)• Resumed new store openings outside Japan

Accelerate EIP (Entertainment Infrastructure Plan*1)/Faster growth in Southeast Asia
• Operate karaoke Manekineko throughout Japan
Started expansion of store network in the Kinki region

Entertainment as
InfrastructureContinued to actively open new stores → 53 locations in Japan• Make entertainment a vital part of everyone’s life
Continued development to expand PER (Private Entertainment Room*2)• An outstanding entertainment experience for people worldwide
Resumed new store openings in S.E Asia → 2 locations in Thailand and 4 in Malaysia
Started overseas collaboration in animation business*1. EIP: The Entertainment Infrastructure Plan has the goal of accomplishing the medium-term corporate vision of “entertainment as infrastructure.”*2. PER: Private Entertainment Rooms, which are part of the “entertainment as infrastructure” vision, are a platform for providing karaoke along withmany other forms of entertainment.

4

2. FY8/2023 Financial Summary

2. FY8/2023 Financial Summary

FY8/2023 Consolidated Results of Operations◼ FY8/2023 consolidated net sales and operating profit exceeded the revised forecasts.
◼ Factors driving favorable performance: (1) Strong growth in sales at stores in prime-shopping areas near railway stations;sales recovery at suburban roadside stores (2) Contribution of stores opened steadily even during the pandemic (3) Increased
efficiency through larger stores (4) Recording of an extraordinary income of 4,043 million yen resulting from the sale of“Sport Nagoya.”(Million yen)

YoY change

Item

FY8/2022

FY8/2023

37,995Gross profit

Vs. forecast
Achievement
Forecast
ratio

AmountRatio

54,629+16,634+43.8%

53,830101.5%

6,140

13,308+7,168+116.7%--

SG&A expenses

3,934

5,641

+1,706+43.4%--

Operating profit

2,205

7,667

+5,461+247.6%

5.8%

14.0%

7,570

101.3%

Ordinary profit

5,331

7,767

+2,435+45.7%(Ordinary profit to net sales)

14.0%

14.2%

7,700

100.9%

Profit attributable to owners ofparent

3,643

7,104

+3,461+95.0%

9.6%

13.0%

7,470

95.1%

44.68

87.14

+42.46+95.0%

91.62

95.1%

Net sales(Operating profit to net sales)(Profit to net sales)

Net income per share (Yen)6

2. FY8/2023 Financial Summary

Consolidated Results of Operations by Segment (YoY Change)◼
◼
◼

Karaoke Business: Sales up 45% and operating profit up three times due to successful measures, including rapidly opening new stores, totarget revenge consumption following the end of the pandemic. Sales and operating profit were 1,300 million yen lower than with theprevious revenue recognition standard.
Bath House Business: Sales increased year on year as restaurant and banquet sales were up supported by increased customer traffic.
Real Estate Management Business: Sales increased year on year due to an increase in leasing income caused by full occupancy.
(Million yen)

Item

FY8/2022

FY8/2023

37,995

YoY change

Vs. revised forecast

AmountRatio

54,629+16,634+43.8%

53,830101.5%

36,17852,318+16,140+44.6%

51,444101.7%

894

1,057

+163

+18.2%

1,052

100.5%

Real Estate Management

1,134

1,488

+353

+31.2%

1,556

95.6%

Adjustment

(212)

(234)

-22

-

（222)

-

Operating profit

2,205

7,667

+5,461+247.6%

7,570

101.3%

Karaoke

3,012

9,006

+5,994+199.0%8,455

106.5%(8.3%)(17.2%)Net sales
KaraokeBath House(Operating profit to net
sales)(73)

52(Operating profit to net
sales)-(5.0%)

Real Estate Management

165

149

(Operating profit to net
sales)(14.6%)(10.1%)(899)(1,541)Bath House

Adjustment

AmountAchievement ratio(16.4%)
+125

-

68

76.5%

(6.5%)
-15

-9.6%

257

58.0%

(16.5%)-642-(1,212)-7

2. FY8/2023 Financial Summary

YoY Change in Operating Profit(* Including increase from store closures in September in FY8/2022)(Million yen)

Increase

Decrease

Total(Million yen)◼

Major increase in sales✓ New stores:+3,198✓ Existing stores:+13,466✓ Bath House/Real Estate:+517✓ Closed stores/Adjustment: -547◼

Major increase in cost of sales✓ Personnel:+3,137 (+31.0%)✓ Cost of merchandise: +1,355 (+47.3%)✓ Rents:+1,313 (+16.8%)✓ Utilities:+951 (+40.5%)✓ Fees and commissions: +710 (+133.5%)✓ Distribution fees:+638 (+44.6%)◼

Major increase in SG&A expenses✓ Fees and commissions:+441 (+122.5%)✓ Personnel:+330 (+23.8%)✓ Opening expenses:+307 (+59.9%)+8

2. FY8/2023 Financial Summary(*Reference) Changes in Net Sales and Operating Profit◼ V-shaped recovery and much higher sales and operating profit than pre-pandemic levels
Net sales(Million yen)
60,00050,00040,000During the pandemic

54,62910,0008,000（*including current businesses
after the spin-off of Curves）

6,000
4,000

37,99537,803Operating profit(Million yen)

During the pandemic

7,667（*including current businesses
after the spin-off of Curves）

3,828
2,205

2,000
29,001

30,000020,791(2,000)20,000(1,858)(4,000)(6,000)10,000(8,000)0(7,628)(10,000)
FY8/2019

FY8/2020

FY8/2021

FY8/2022

FY8/2023

FY8/2019

FY8/2020

FY8/2021

FY8/2022

FY8/2023
9

2. FY8/2023 Financial Summary(*Reference)

Results of Operations by Segment (vs. FY8/2019)◼ Karaoke Business: Sales increased 46.4% mainly due to continued store openings even in the pandemic; earnings
doubled.
◼ Bath House Business: Sales decreased due to closure of two Oita stores and slow recovery.
◼ Real Estate Management Business: Progress in the acquisition of various types of real estate and leasing of existing(Million yen)owned properties.
Item

FY8/2019

FY8/2023

37,803

ChangeVs. revised forecast

AmountRatio

54,629+16,826+44.5%

53,830101.5%

35,73252,318+16,586+46.4%

51,444101.7%

1,640

1,057

-583

-35.5%

1,052

100.5%

431

1,488+1,057+245.2%

1,556

95.6%

Adjustment

-

(234)

-234

-

(222)

-

Operating profit

3,828

7,667

+3,839+100.3%

7,570

101.3%

Karaoke

4,518

9,006

+4,488+99.3%

8,455

106.5%(12.6%)(17.2%)

108

52(Operating profit to net
sales)(6.6%)(5.0%)

Real Estate Management

59

149

(Operating profit to net
sales)(13.7%)(10.1%)(858)(1,541)

Net sales
KaraokeBath House
Real Estate Management(Operating profit to net
sales)

Bath House

Adjustment

AmountAchievement ratio(16.4%)-56-51.9%

68

76.5%(6.5%)+90+152.5%

257

58.0%

(16.5%)-683-(1,212)-10

2. FY8/2023 Financial Summary(*Reference) Operating Profit (vs. FY8/2019)
Increase(Million yen)

Decrease(Million yen)

Total

◼

Major increase in sales✓ New stores:+14,838✓ Existing stores:+5,572✓ Bath House/Real Estate: +474
✓ Others including closed stores:-4,059◼

Major increase in cost of sales✓ Personnel:+4,265 (+47.4%)✓ Rents:+3,190 (+53.7%)✓ Utilities:+1,057 (+47.1%)✓ Fees and commissions:+654 (+111.3%)✓ Cost of merchandise: +651 (+18.2%)✓ Distribution fees:+514 (+33.1%)✓ Depreciation:+438 (+13.4%)◼

Major increase in SG&A expenses✓ Fees and commissions: +347 (+76.4%)✓ Personnel:+226 (+15.2%)✓ Opening and other expenses:+198 (+31.8%)+

11

2. FY8/2023 Financial Summary

Karaoke Business122. FY8/2023 Financial Summary

Karaoke Business◼ Sales and profit margins improved as performance of existing stores recovered and due to contribution fromsteady new store openings.
◼ Renewed menu and revised room rates → Maintained customer numbers; average sales per customer increased.
◼ Profit margins increased due to store size expansion and better operating efficiency(Million yen)

FY8/2019

FY8/2020

FY8/2021

FY8/2022

FY8/2023

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

35,732-

27,156-19,195-36,178-52,318-

Cost of sales

27,73877.6%

24,821

91.4%

23,383121.8%

30,17883.4%

39,28375.1%

Gross profit

7,994

22.4%

2,335

8.6%

(4,188)

-

6,000

16.6%

13,035

24.9%

SG&A
expenses

3,475

9.7%

3,174

11.7%

2,402

12.5%

2,987

8.3%

4,028

7.7%

Operatingprofit

4,518

12.6%

(839)

-

(6,591)

-

3,012

8.3%

9,006

17.2%
13

2. FY8/2023 Financial Summary

Existing Store Sales◼
◼

◼

FY8/2023 existing store sales (total of monthly sales) were 7.9% higher than CY12/2019, the last FY before the pandemic started.
Sales of stores in prime shopping areas near railway stations were 16.3% higher than in FY8/2019. Revenge consumption quickly
emerged, mainly among younger consumers.
Sales of roadside stores in suburban locations, which had lagged behind, were down 1.9% from CY12/2019, but monthly sales at theselocations were higher than in the same months of CY12/2019 beginning in May 2023.

(Vs. same month of CY12/2019; previous revenue recognition standard is used to permit pre-pandemic comparisons)
120％
Under
行動制限強化
restrictions

100％
80％
7th

第7波
wave

8th
第8波
wave

6th

第6波
wave
2nd

第2波
wave

3rd

第3波
wave
1st
第1波
wave

9 10 11 12 1

2

Sales
売上高

5th
第5波
wave

4th
第4波
wave

Prime shopping

areas near
駅前繫華街

railway stations

Roadside sites
郊外ロードサイド3

FY8/2020

4

5

6

7

8

9 10 11 12 1

2

3

4

FY8/2021

5

6

7

8

9 10 11 12 1

2

3

4

FY8/2022

5

6

7

8

9 10 11 12 1

2

3

4

5

FY8/2023

6

7

8

14

2. FY8/2023 Financial Summary

Sales at Existing Stores/Number of Customers/Sales Per Customer◼ Steadily renewed menus and increased room rates from October 2022, and reviewed again in December and January◼ Revenge consumption was widespread, and the number of customers exceeded that of CY12/2019 in May, July andAugust after the application of Category V.
(％) (Vs. same month of CY12/2019; previous revenue recognition standard is used to permit pre-pandemic comparisons)
125

117.7

120

114.7

115

110.2
104.8

105
100.2
100

106.9
107.3 98.8101.6

95.6

97.2

108.3

104.4
104.0
103.0

92.6

113.0

114.0

111.9

110

95

120.1

118.7

108.5

110.7

115.6

112.9 114.8
104.6

102.7

101.9

99.8
97.1

98.7

98.5

January

February

110.9

95.9

90
89.0

85
80
75
September OctoberNovember December

Number of customers

March

April

Sales per customer

May

Sales

June

July

August15

2. FY8/2023 Financial Summary

Number of Locations and Rooms◼ Opened 53 stores in FY8/2023–Store opening was largely as planned◼ Continued to increase store size and open new stores in prime shopping areas near railway stations→ Improved efficiency of store operations
FY8/2022

Number of locations/rooms

Manekineko

No. oflocationsNo. ofrooms

No. oflocationsNo. of
rooms

298

7,797

340

9,411

+42

+1,614

Suburban/roadside
locations

273

6,320

274

6,563

+1

+243

Total

571

14,117614

15,974+43+1,857

6

210

6

212

0

+2

577

14,327620

16,186+43+1,859

Total

Number of locations
opened/closed

No. oflocationsclosedNo. ofrooms

ChangeNear railway stations/prime shopping areas

One Kara

No. oflocations
openedNo. oflocations

FY8/2023

1Q FY8/2023

2Q FY8/2023

3Q FY8/2023

4Q FY8/2023

FY8/2023

Near railway stations/prime shopping areas
Suburban/roadside
locations

13

9

13

10

45

6

0

0

2

8

Total

19

9

13

12

53

2

3

5

0

10

16

2. FY8/2023 Financial Summary

Number of Stores By Location Type and By Prefecture◼ Continued to open new stores in prime shopping areas near railway stations; currently twice as many rooms at thesestores as prior to the pandemic◼ The shopping district/suburban location ratio reversed from 4:6 prior to the pandemic to 6:4 currently.
◼ Outside Tokyo, opened 9 stores in Kyushu and Okinawa; 9 stores in the Kinki region, and 12 stores in other regions

Room ratio by location typeFY8/2023

FY8/2019

0%

9,411

6,563

58.9%

41.1%

4,774

6,649

41.8%

58.2%

20%

40%

Station/shopping
駅前圏繁華街
district locations

60%
Suburban/roadside
郊外ロードサイド
locations

80%

Number of Manekineko stores by prefecture
as of August 2023
23 locations
opened in the
Tokyo
Metropolitan
area

100%
17

2. FY8/2023 Financial Summary

Number of Rooms Per Store in Different Store Opening Periods◼40 Stores have been getting bigger and bigger, including those opened during the pandemic
35(Number of rooms per store)
28.5

30
25

32.9

24.6

20
15
10

5
0
Stores opened before the pandemic

Stores opened during the pandemic(Before and on February 29, 2020)(March 1, 2020 to August 31, 2022)

463 stores

104 stores

Stores opened during FY8/2023(On and after September 1, 2022)

53 stores18

2. FY8/2023 Financial Summary

Overseas Performance◼ Restarted aggressive store openings after the pandemic: Opened 4 stores in Malaysia
and 2 in Thailand◼ Sales and earnings are steadily recovering; average monthly sales of about 5 million yen
at Southeast Asia stores◼ Became profitable in Malaysia and Thailand◼ Hired a manager for Indonesian operations→ Utilize local human resources(Million yen)

FY8/2022

FY8/2023

Full-year

Full-year

OperatingprofitNet sales

No. oflocations

Net sales

OperatingprofitSnapshot of a store in
Malaysia
No. oflocations

Overseas

315

(67)

11

779

(2)

17

South Korea

108

(9)

4

99

(14)

4

Malaysia

192

(13)

6

452

17

10

Thailand

0

(27)

0

185

11

2

Indonesia

15

(18)

1

43

(16)

1

* Sales and operating profit in Malaysia, Thailand and Indonesia are not consolidated; sales andearnings in July and August for each country have been multiplied by six for conversion to a 12-month
basis.

Snapshot of a store in
Thailand19

AgendaBath House/Real EstateManagement Businesses202. FY8/2023 Financial Summary

Real Estate Management Business◼ Increase in rental income along with progress in leasing→ AQERU Maebashi, Fleuret Sakuragicho◼ Acquisition of properties for opening new stores(Million yen)

FY8/2019

FY8/2020

FY8/2021

FY8/2022

FY8/2023

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

431

-

637

-

698

-

922

-

1,488

-

Cost of sales

343

79.6%

697

109.4%

863

123.6%

737

79.9%

1,296

87.1%

Gross profit

88

20.4%

(60)

-

(165)

-

185

20.1%

192

12.9%

SG&A
expenses

28

6.5%

16

2.5%

16

2.3%

19

2.1%

42

2.8%

Operatingprofit

59

13.7%

(77)

-

(181)

-

165

17.9%

149

10.1%
21

2. FY8/2023 Financial Summary

Bath House Business◼ Operating profit moved into the black for the first time since FY8/2019→ Customer numbers increased after the pandemic◼ Profit margin declined compared to before the pandemic as soaring utility costs put
pressure on profits(Million yen)

FY8/2019

FY8/2020

FY8/2021

FY8/2022

FY8/2023

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

1,640

-

1,207

-

897

-

894

-

1,057

-

Cost of sales

1,466

89.4%

1,231

102.0%

1,061

118.3%

939

105.0%

976

92.3%

Gross profit

174

10.6%

(24)

-

(164)

-

(45)

-

81

7.7%

SG&A
expenses

65

4.0%

45

3.7%

38

4.2%

27

3.0%

28

2.7%

Operatingprofit

108

6.6%

(70)

-

(203)

-

(73)

-

52

5.0%
22

AgendaBalance Sheet and Cash Flows23

2. FY8/2023 Financial Summary

Balance Sheet(Million yen)August 31,
2022

August 31,
2023

Current assets

9,911

12,374+2,462

Non-current assets

37,362

44,633+7,271

Total assets

47,27357,007+9,734Current liabilities

9,643

13,9644,320

Non-current liabilities

18,12017,648-472

Net assets

19,50825,394+5,885

ChangeNet interest-bearing debt

7,955

4,411

-3,544Equity ratio

41.3%

44.5%

Up 3.3pt

Net DER (times)
ROE

0.4
19.3%

(Million yen)

60,0000.6

50,0000.5

40,0000.4

30,0000.3

20,0000.2

10,0000.1

02022年8月期
FY8/2022

0.2 Improved 0.2
31.7%

Up 12.4pt

0

Total

総資産
assets

Net interest-

ネット有利子負債
bearing debt

2023年8月期
FY8/2023
Net
純資産
assetsNet DERNET
DER（倍）(times)Non-current assets increased as aggressive store openings continued. Working capital also increased due to a significant
increase in sales. The result was an increase of 9.7 billion yen in total assets.
Net assets were higher as earnings increased and assets increased along with the increase in payables and other current
liabilities. As a result, net interest-bearing debt decreased and the net DER declined to 0.2, half of the previous FY.
Although net assets increased, the ROE increased to over 30% due in part to extraordinary income.

24

2. FY8/2023 Financial Summary

Cash Flows(Million yen)
FY8/2022
Cash flows from operating
activities
Cash flows from investing
activities(Free cash flows)

11,607

FY8/2023

13,385

Change+1,778

CF from operating activities
営業活動によるキャッシュフロー
Free cash flows
フリーキャッシュフロー
15,000

CF from investing activities
投資活動によるキャッシュフロー
期末現金残高Cash at end of period(Million[百万円] yen)

10,0005,000(7,887)(9,227)-1,340
0

3,719

4,158

+445
(5,000)Cash flows from financing
activities(2,327)(2,744)-417

Cash and cash equivalents
at end of period

6,379

7,854

+1,475(10,000)(15,000)
2022年8月期
FY8/2022

2023年8月期
FY8/2023

Cash flows from operating activities increased and remained high due to a V-shaped recovery in sales and earnings.
Free cash flows increased even after funding larger expenditures for investing activities, including the continuation of the rapid
opening of stores in Japan and other countries. Cash increased even as some interest-bearing debts were reduced.

25

3. FY8/2024 Consolidated Forecast

3. FY8/2024 Consolidated Forecast

FY8/2024 Forecast
Consolidated Forecast
Item

Net sales
Operating profit(Operating profit to net sales)

FY8/2023
ResultFY8/2024
Forecast+7,347

13.4%

7,667

9,004

+1,33717.4%(14.0%)(14.5%)(Ordinary profit to net sales)(14.2%)(14.4%)

Profit attributable toowners of parent

7,104

5,791

(13.0%)(9.3%)

87.14

71.03

Net income per share
(Yen)

Ratio

61,976

8,910(Profit to net sales)

Change54,6297,767

Ordinary profit

YoY◼ Karaoke Business・At existing stores, forecast an increase in(Million yen)customers compared to FY8/2023 as thenumber of customers returns to the prepandemic level, and higher sales as prices areraised, mainly in the first half

+1,14314.7%-1,313-18.5%-16.11-18.5%

・Sales forecast includes the first full FY
contribution of the 53 stores added in FY8/2023
and sales from about the same number of newstores in FY8/2024
・Improve profitability by increasing productivity tooffset expenses due to higher salaries◼ Forecast lower net profit because of
extraordinary income of 4 billion yen in
FY8/2023; forecast 37.1% increase after
deducting this extraordinary income from prioryear earnings【Reference】
Share acquisition rights and convertible bonds soldto Advantage Advisors can be exercised/converted
beginning on March 15, 2024. The capital andbusiness alliance with this company will continue.
These rights and bonds are equivalent to 10,387,936
shares at 675 yen per share.
27

3. FY8/2024 Consolidated Forecast

FY8/2024 Forecast by Segment
Forecast by Segment
Item(Million yen)

FY8/2023
ResultFY8/2024
Forecast

54,62952,318
1,488
1,057
(234)
7,667

61,97660,075
1,565
563
(226)
9,004

(Operating profit to net sales)(14.0%)(14.5%)

Karaoke

9,006

10,390(Operating profit to net sales)(17.2%)(17.3%)

149

90(10.1%)(5.8%)

52

10(5.0%)(1.8%)(1,541)(1,486)

Net sales
KaraokeReal Estate Management
Bath House⇒Other

Adjustment
Operating profit

Real Estate Management(Operating profit to net sales)

Bath House⇒Other(Operating profit to net sales)

Adjustment

YoY

Change+7,347+7,757+77-494+8+1,337◼ The Bath House Business has
become much smaller following theclosing of Tokyo Kenko Land. This
segment is listed as other because
a study is under way concerning its
reclassification.

+1,384
-59
-42
+55

28

3. FY8/2024 Consolidated Forecast

Karaoke Segment Quarterly Net Sales and Operating Profit◼

◼
◼

Sales and earnings are lowest in the 1Q and highest in the 2Q, which includes the New Year holiday, followed by the 4Q, which includes Obon holiday
and summer vacation, and the 3Q, which includes spring break and Golden Week.
Prior to the pandemic, there was a loss in the 1Q, but the 1Q FY8/2023 was profitable and the 1Q is expected to have a profit again in FY8/2024.
Performance was held down somewhat in the 2Q FY8/2023 by the eighth wave of the pandemic. The 2Q FY8/2024 performance is expected to return
to normal.

Karaoke Segment Quarterly Net Sales and Operating Profit(Million yen)
18,000Net sales (left axis)
Operating profit (right axis)
１Q
２Q
３Q
４Q

16,00014,000(Million yen)
5,000
4,000
3,000

12,0002,000

10,000

1,000

8,000

0

6,000

(1,000)4,000(2,000)2,000(3,000)1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

FY8/2018

FY8/2019

FY8/2020

FY8/2021

FY8/2022

FY8/2023

FY8/2024 (fct.)29

4. Shareholder Return Policy

4. Shareholder Return Policy

PolicyDistributing earnings to shareholders is one of the highest priorities of Koshidaka Holdings. Our policy is to pay
dividends consistently while taking steps for the medium/long-term growth of the value of our stock. By
restarting the Entertainment Infrastructure Plan*1 and creating the next core drivers of growth, we are aiming
for more growth of our businesses and the even more efficient use of capital.
◼ Plans to pay interim and year-end dividends of 7 yen each, for a total full-year dividend of 14 yen per share, by adding acommemorative dividend to celebrate the 33rd founding anniversary to an ordinary dividend.

Dividend per share/Payout ratio
FY8/2019(Yen)

FY8/2020

FY8/2021

FY8/2022

FY8/2023

FY8/2024 (forecast)Interim

6.0

8.0

2.0

4.0

5.0

7.0

Year-end

6.0

4.0

2.0

4.0

7.0

7.0

Annual

12.0

12.0

4.0

8.0

12.0

14.0

15.7%

-

-

17.9%

13.8%

19.7%

Payout ratio*1. The Entertainment Infrastructure Plan has the goal of accomplishing the medium-term corporate vision of “entertainment as infrastructure.”31

4. Shareholder Return Policy

Shareholder Benefit Program (Record Date: August 31)
Shares held
At least 100

At least 400

1,000 or more

Length of shareholding

Gift

Under three years

2 coupons (2,000 yen)Three years or more

4 coupons (4,000 yen)

Under three years

5 coupons (5,000 yen)Three years or more

10 coupons (10,000 yen)

Under three years

10 coupons (10,000 yen)Three years or more

20 coupons (20,000 yen)

* Shareholder gift coupons can be used at Karaoke Manekineko, One Kara (single-use room karaoke) and
Maneki-no-Yu bath houses in Japan. Up to five coupons can be used for a single visit and coupons canbe used with other coupons.
32

5. Strategies and Actions

The “post-pandemic” period has ended
The rapid opening of stores during the pandemic has clearly positioned
Koshidaka as Japan’s karaoke leader in terms of the number of locations.
The performance of existing stores is better than before the pandemic andthere is no longer any reason to compare sales and earnings
with pre-pandemic levels.
Koshidaka will continue aggressive store openings in Japan
while expanding operations in other countries.
The goal is more growth at a pace that no competitor can match.

34

5. Strategies and Actions

Medium/Long-term Plan and Strategic Initiatives

Initiative 1

Accelerate the Entertainment Infrastructure Plan*1
A) Aggressively open stores: Continue opening stores in Tokyo Metropolitan area and expand store
opening areas to less cultivated markets
B) More private entertainment rooms*2: Improve exsisting services and develop new services
C) A sound organizational structure: Introduce a new personnel system (increase in employee
salaries), enhance training and recruitment capabilities, recruit human resources with advanced
skills and continue activities to help accomplish the SDGs

Initiative 2

Initiative 3
Initiative 4

Improve profitability by increasing productivity
Increase labor productivity in order to both raise salaries for employees and lower labor’s share of income
Establish Koshidaka Digital for the development of private entertainment rooms (PER) and the faster digitaltransformation of store and head office operations.

Full-scale expansion outside Japan
Open stores faster in countries in Southeast Asia with enormous potential for growth

Create new sources of earnings
Welltainment business*3 Plan to open the second Canop store*1 The Entertainment Infrastructure Plan has the goal of accomplishing the medium-term corporate vision of “entertainment as infrastructure.”*2 Private Entertainment Rooms, which are part of the “entertainment as infrastructure” vision, are a platform for providing karaoke along with many other forms ofentertainment.
*3 Welltainment (wellness and entertainment) is a concept for wellness measures incorporating enjoyment (entertainment) for a healthy life.

35

5. Strategies and Actions

1

Accelerate the EIP: Action Plan
For the Entertainment Infrastructure Plan*1, actions for business growth (A) Rapidly open stores, (B) Moreand upgraded PER) and for (C) building a sound organizational structure needed for the first two actions.
The final goal is sales of 100 billion yen.

On track to reach the FY8/2025 sales target of 65 billion yen

Sales target
100 billion yen

Sales per room
(More private
entertainment
rooms to give
300,000
people morereasons to visit akaraokelocation)

Explanation of strategic actions

A(More rooms)

FY8/2023

FY8/2025 target
Net sales:
65 billion yen

200,000

B

Increase rooms/floors
at existing locations

New locations from scratch

Karaoke

M&A

Recruiting and training(sound organization for accomplishing the EIP)

Number of
Rooms(Accelerate opening
stores at prime
shopping areas/nearrailway stations)

More and
upgraded
PER(Increase sales
per room)

Occupy locations vacated bycompetitors, utilizing existingrooms and equipment

100,000

Open stores
rapidlyC

A soundorganizational
structure(Recruiting andtraining)

Continue opening stores in prime shopping areas
near railway stations, increase store size, rapidly
increase the number of stores in the Kinki region
where there is enormous potential for growth, andopen stores in areas where Koshidaka does not yet
operateIncrease room utilization and sales per customer byusing advanced digital technologies for new services
that give customers more forms of entertainment toenjoy.
Recruit more people from other companies for theskills needed to implement the above strategic
actions.
Increase employees’ skills and motivation and theirsalaries by completely reexamining the personnel
system.

*1 The Entertainment Infrastructure Plan has the goal of accomplishing the medium-term corporate vision of “entertainment as infrastructure.”36

5. Strategies and Actions

1

A

Accelerate the EIP: Strategic Internal Actions – Rapidly Open Stores

Continue opening many stores near stations and in prime shopping districts as well as in the
Kinki region to increase awareness; also open stores in regions where there is enormous
potential for growth.
Strategy for new stores

Continue opening many storesnear stations and shopping
districts, mainly in the Tokyo
Metropolitan area

Manekineko share of karaoke rooms
in Japan*1
Manekineko(As of August
16.3% 2023)
Manekineko(When the EIP
is achieved)
Karaoke other than
30.2%
Manekineko

Rapidly increase the number oflocations in the Kinki region

Rapidly opening storesin the Kinki region

Manekineko share of
karaoke rooms by
prefecture

Open stores in regions where there
is enormous potential for growth*1 Calculated based on the number of rooms as of August 31, 2023 (Koshidaka)/
Karaoke White Paper as of March 31, 2022
Assumes no change in the total number of rooms (99,441 nationwide) even when
the EIP is achieved.

Continue opening
stores in Tokyo area

30% -Open stores in areas
where Koshidaka has
not yet well cultivated

10% - 30%0% - 10%37

5. Strategies and Actions

1

B

PER（Private Entertainment Rooms）

The goal is to increase sales per room by converting karaoke rooms into private entertainment rooms (PER)
for karaoke as well as for enjoying many other services.
Koshidaka Digital will support the digital transformation aspect of this conversion. Existing services will be
upgraded and new PER services will be developed and offered.
Upgrade existing services and develop new PER services+

And more …

38

5. Strategies and Actions

1

Progress Report
Accelerate the EIP: Strategic Internal Actions– A sound Organizational Structure
Actions to build a sound infrastructure to serve as the foundation for growth in order toaccomplish the goals of the Entertainment Infrastructure Plan

1

3
2

C

Introduce a new personnel system◼ Progress in the Workstyle Innovation Plan
• Restructuring of salary level and evaluation system
New personnel system: To be introduced in
FY8/2024
Salary level: 25% increase in average employee
salary over 2 years starting in FY8/2024• Further enhancement of welfare benefits and reformof work style

Recruit many human resources withadvanced skills◼ Promote recruitment of human resources for the
next generation

3

Strengthen training programs at
Maneki-Juku (employee training center)◼ Introduce training programs for each employee level◼ Develop video of operation manuals◼ Enhance training programs

4

Activities to help accomplish theSDGs
Established the Sustainability Promotion
Committee and strengthening social contribution
activities and environmental measures◼ Single-parent family support◼ “Children’s 110 (911) Hotline” activities◼ “Let’s Sing –a good cheer song” project→ Singing this song will be a donation toorphanages and other institutions.

39

5. Strategies and Actions

２

More DX to Develop and Introduce Systems to Increase
Productivity
Established Koshidaka Digital for the purpose of developing a variety of systems for higher productivity ofstore operations and back office tasks as well as starting to benefit from these advances even faster
Measures to increase productivity• Automated ordering system• Remote store operations
support• Automated shift preparation
system• Invoice and payment system• New POS system• Reservation system• Automatic reception: Remoteconcierge system• Self-checkout units40

5. Strategies and Actions

３

Full-scale Expansion Outside Japan: Resume Acceleration of Karaoke Business Growth
The market for leisure activities is expected to grow rapidly in Southeast Asia as personal income in many countries increases.
The market is likely to expand along with populations in a long-run; there is substantial potential for opening more stores even based on thecurrent size of economies of countries in this region.

Strategies for growth of the karaoke business outside Japan

Market-based comparison of major SE Asian countries
Population
Nominal GDP
No. of (millions of people) (billions of dollars)
Maneki
Potential
Potential
stores2022
for new
2022
for new
storesstores•GDP per
person ($)

Businessclimate

•
•

2022
•

(Reference)
Japan

620

124

-

4,234

-

33,922

Malaysia

10

34

164

408

58

12,364Thailand

2

72

347

536

76

7,651

Koshidaka•

Manekineko•

No more restrictions on store operating hours as the pandemic
ended
Inadequate supply of entertainment opportunities due to fast
growth of middle-income population
The medium-term outlook is for market growth in proportion to
population as economies of SE Asian countries continue to become
stronger
Restarted rapid store network expansion immediately after the endof pandemic restrictions
Facilities of local competitors target evening and nighttime use.
Local customers favor Manekineko Karaoke as authentic “Family
Karaoke” where they can actually take their family together.
In FY8/2023, average monthly sales were about 5 million yen at
Southeast Asia stores.

Stores at end of FY
FY8/2020 FY8/2021 FY8/2022 FY8/2023

Indonesia

1

275

1,334

1,319

187

4,798

Vietnam

-

98

475

406

58

4,087

Philippines

-

115

559

404

57

3,623

Total

13

595

2,880

3,074

436

5,228

Dec. 2023
Plan

Overseas

21

12

11

17

22

South Korea

5

4

4

4

4

Singapore

8

0

0

0

0

Malaysia

6

6

6

10

13

Thailand

1

1

0

2

3

Indonesia

1

1

1

1

2

*Potential for new stores (population): Ratio in Japan of Manekineko rooms to the population when EIP is achieved is used to estimate the potential number of rooms based on
populations of other countries (# of stores assuming 50 rooms per store); Source: United Nations* Potential for new stores (nominal GDP): Ratio in Japan of Manekineko rooms to nominal GDP when EIP is achieved is used to estimate the potential number of rooms based on thenominal GDP of other countries (# of stores assuming 50 rooms per store); Source: IMF

41

5. Strategies and Actions

４

Create New Sources of Earnings: Welltainment Business
FY8/202X
The Welltainment
business becomes thesecond core business of
Koshidaka

FY8/2024
Confirm viability of the business model••Game playing environment with 20-minute brain
exercise and oxygen exercise studioOpen second location: Canop Yukigaya Otsuka store

FY8/2023
Confirmed successof the services

Achieved high customer
retention rate

Opened Canop Maebashi flagship store on August 2, 2022
✓ 20-minute program (Brain and Body)✓ Formation of a community (Mind)

42

The Mission of Koshidaka Holdings
We will establish network of stores everywhereworldwide which provides with various types ofentertainment services in order to enable people toenjoy their leisure time in the best possible way

43KOSHIDAKA HOLDINGS Co., LTD.
(TSE Prime Market 2157)

The purpose of this presentation is to provide information about the Koshidaka
Group based on results of operations for the fiscal year ended August 31, 2023.
This is not a solicitation to purchase securities issued by Koshidaka Holdings.
This presentation is based on information as of October 11, 2023. Opinions,forecasts and other information that is not a fact represent the judgments ofmanagement at the time this presentation was prepared. Koshidaka Holdings
provides no guarantee or other assurance that the information in this presentationis accurate or complete and may revise information without prior notice.
Information about other companies and industries in this presentation use public
information and other sources. Koshidaka Holdings does not guarantee theaccuracy of this information.