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

Results of Operations
for the First Half of the Fiscal YearEnding August 2024 (1H FY8/2024)
April 11, 2024

Results of Operations for 1H FY8/2024

Agenda1 Executive Summary

2 1H FY8/2024 Financial Summary
3 FY8/2024 Consolidated Forecast
4 Shareholder Return Policy
5 Strategies and Actions2

1. Executive Summary

1. Executive Summary

1H FY8/2024 Overview• Record-high first half ordinary profit and profit attributable to owners of parent
All-time high sales and operating profit on a Curves spinned-off basis• Continuing to open stores in the Kinki region (8 locations)• Speeding up growth outside Japan (3 locations in Malaysia, 1 in Thailand and 1 in Indonesia), totaling
22 overseas locations

Accelerate EIP (Entertainment Infrastructure Plan*1)/Intermidiate target in sight-FY08/2024 revised sales forecast is 96.5% of FY08/2025 Intermidiate EIP Target of ¥65 Billions• Operate karaoke Manekineko throughout JapanEntertainment as
InfrastructureContinuing to add stores rapidly in the Kinki region
Continued to open many new stores (Station front/cozy commercial area/Relocation projects)→ Continuing pace for 50 stores in a year in Japan• Make entertainment a vital part of everyone’s life
Continued development to expand PER (Private Entertainment Room*2) ⇒ ONEREC VK• An outstanding entertainment experience for people worldwide
Aggressive store openings overseas, in South East Asia
Collaboration with Japanese animation contents in Japan and overseas• Utilizing Customer base for B to B business as marketing supporting tools“Neko no Te” trial starts*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. 1H FY8/2024 Financial Summary

2. 1H FY8/2024 Financial Summary

1H FY8/2024 Consolidated Results of Operations◼ First half sales and operating profit were mostly consistent with the plan
◼ Ordinary profit and profit attributable to owners of parent exceeded the forecast as non-operating income
increased◼ Record-high first half ordinary profit and profit attributable to owners of parent, and first half sales andearnings also archived a record high on a Curves spinned-off basis(Million yen)
YoY change

Item

1H FY8/2023

1H FY8/2024

25,609Gross profit

Vs. 1H forecast
Achievement
Forecast
ratio

AmountRatio

30,578+4,969+19.4%

29,826102.5%

6,079

8,086

+2,007+33.0%--

SG&A expenses

2,554

3,251

+697

+27.3%--

Operating profit

3,525

4,834

+1,309+37.1%(Operating profit to net sales)

13.8%

15.8%

4,561

106.0%

Ordinary profit

3,683

5,542

+1,859+50.5%(Ordinary profit to net sales)

14.4%

18.1%

4,514

122.8%

Profit attributable to owners ofparent

2,499

3,896

+1,396+55.9%

9.8%

12.7%

2,934

132.8%

30.66

47.79

+17.13+55.9%

35.99

132.8%Net sales(Profit to net sales)

Net income per share (Yen)62. 1H FY8/2024 Financial Summary

Consolidated Results of Operations by Segment (YoY Change)◼

◼
◼

Karaoke: Existing store sales up 22% and operating profit up 36.5% due to continuation of opening many stores and growth in thenumber of customers and sales per customer. Profit ratios increased despite expenditures for new stores, upgraded equipment at existing
stores and expenses due to higher salaries (Workstyle Innovation Plan).
Real Estate Management: Sales unchanged as the decline due to the sale of Sport Nagoya was offset by new properties.
Other: Sales down because of the closing of Tokyo Kenko Land Maneki-no-Yu Bath House (former Bath House Segment). Sales of 227
million yen and loss of 19 million yen transferred from the Karaoke segment.
(Million yen)Item

YoY change

Vs. 1H forecast

1H FY8/2023

1H FY8/2024

25,60930,578+4,969+19.4%

29,826102.5%

24,24929,590+5,342+22.0%

28,687103.2%

Real Estate Management

753

749

-4

-0.5%

747

100.3%

Other

717

434

-284

-39.5%

505

86.0%

Adjustment

(111)

(196)

-85

-

(113)

-

Operating profit

3,525

4,834

+1,309+37.1%

4,561

106.0%

Karaoke

4,074

5,549

+1,485+36.5%

5,372

103.3%(Operating profit to net
sales)(16.8%)(18.8%)

Real Estate Management

129

40

(Operating profit to net
sales)(17.1%)(5.4%)

(24)

(39)

(-)

(-)

(653)

(716)

Net sales
Karaoke

Other(Operating profit to net
sales)
Adjustment

AmountRatio

Achievement
ratio

Forecast(18.7%)
-88

-

4

-

(0.5%)
-24

-

(48)

-

(-)
-63

-

（767)

-

7

2. 1H FY8/2024 Financial Summary

YoY Change in Operating Profit(Million yen)

Increase

Decrease

Total(Million yen)◼

Major increase in sales✓ New stores:+2,241✓ Existing stores:+3,018✓ Real Estate/Other:-288✓ Closed stores/Adjustment:-2◼

Major increase in cost of sales✓ Personnel:+891 (+13.8%)✓ Rents:+694 (+15.9%)✓ Cost of merchandise: +519 (+26.8%)✓ Depreciation:+210 (+11.9%)✓ Distribution fees:+178 (+20.7%)✓ Utilities:-160 (-9.2%)◼

Major increase in SG&A expenses✓ Personnel:+203 (+24.8%)✓ Advertising costs:+187 (+92.5%)✓ Opening expenses:+98 (+25.7%)✓ Recruiting advertisement:+71 (+57.6%)✓ Reception and communication fee:
+39 (+10 times)+8

2. 1H FY8/2024 Financial Summary(*Reference) Changes in First Half Net Sales and Operating Profit◼ Sales and operating profit are near the peaks prior to the Curves spin-off and rose to new
all-time highs on a post-spinoff basis.
◼ Record-high first half ordinary profit and profit attributable to owners of parent.
Net sales
Operating profit/ Ordinary profit(Million yen)
(Million yen)
40,00035,0006,000

During the
pandemic■Curves business

4,992

DuringthetheDuringpandemic
pandemic

5,000
4,000

30,000

3,860

3,683

2,973
3,000

■Curves business

25,000ー Ordinary profit

2,000

20,0001,000

30,57815,00025,60910,000

5,542

5,231

16,68318,71919,679-2,644
1,256

1,999

1,875

275

3,525

4,834

1H

1H

-1,00016,533
12,1165,000

0-2,000-2,429-3,000

0
1H

1H

1H

1H

1H

1H

1H

FY8/2018 FY8/2019 FY8/2020 FY8/2021 FY8/2022 FY8/2023 FY8/2024

1H

1H

1H

1H

1H

FY8/2018 FY8/2019 FY8/2020 FY8/2021 FY8/2022 FY8/2023 FY8/2024

9

2. 1H FY8/2024 Financial Summary

Karaoke Business10

2. 1H FY8/2024 Financial Summary

Karaoke Business◼ Existing store sales are up and there are also sales from new stores as store openings continue; the number ofcustomers is increasing too.
◼ Renewed menu and revised room rates (from December 2023 to February 2024) → Average sales per customer
increased.
◼ Higher profit margin as the growth in the volume and sales per customer of this business more than offset
higher salaries and benefits for employees(Million yen)
1H FY8/2021
Previous classification

1H FY8/2022
Previous classification

1H FY8/2023
Previous classification

1H FY8/2023
New classification

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

11,274-

15,660-24,442-

24,249-29,590-

Cost of sales

12,090107.2%

13,57886.7%

18,531

75.8%

18,32075.6%

21,54072.8%

Gross profit

(815)

-

2,082

13.3%

5,910

24.2%

5,928

24.5%

8,049

27.2%

SG&A
expenses

1,266

11.2%

1,461

9.3%

1,872

7.7%

1,863

7.7%

2,500

8.4%

Operatingprofit(2,062)

-

620

4.0%

4,038

16.5%

4,065

16.8%

5,549

18.8%

1H FY8/2024*Starting at this FY, several pure restaurant/bar stores which do not provide with Karaoke service is newly categorized into “Other” business segment112. 1H FY8/2024 Financial Summary

Existing Store Sales◼
◼
◼

First half existing store sales were 12.7% higher than in 1H FY8/2023 and up 16.0% compared with the same period before the pandemic (1H
FY8/2019) (existing stores are defined on a monthly basis). In November and December sees rather high growth rate, since this FY business was backto knormal busy year end season compared to sluggish last year due to last (8th) pandemic wave.
Sales increased 10.9% YoY at near station/prime shopping area stores due to revenge consumption that emerged in 2Q FY8/2023. Sales at theselocations were 23.6% higher than in the same period of FY8/2019.
At suburban/roadside stores, where revenge consumption began to emerge later, sales increased 16.5% which is higher than that of near station/prime
shopping area, Sales were 7.0% higher than in the same period of FY8/2019.

[Existing store sales compared with same month in FY8/2023]

130%
Total

Near Station/Prime Shopping Area

125%

Suburban/Roadside

125%

120%

115%

120%

119%

114%

114%

121%

119%

114%
112%

110%

112%

109%

112%

111%
108%

110%
105%
105%

107%
103%

100%
2309

2310

12
2311

2312

2401

2402

2. 1H FY8/2024 Financial Summary

Sales at Existing Stores/Number of Customers/Sales Per Customer◼
◼
◼

The contribution of price increases in Feb. 2023 reached one year in Feb. 2024, ending the effect on YoY comparisons.
The number of customers continues to increase, climbing steadily by about 10% YoY during the first half except in October.
First half sales are up by about 10% to 20% compared with one year earlier because of higher sales per customer and more customers.

[Existing store sales compared with same month in 1H FY8/2023 ]
125%
Sales

Number of Customers

Sales per Customer
120%

120%

115%

114%

114%
115%

110%

110%
107%
109%

105%

109%

104%

107%
109%

107%
105%

105%

104%

100%

101%
99%

98%

95%
2309

2310

2311

2312

2401

2402

13

2. 1H FY8/2024 Financial Summary

Karaoke Segment Quarterly Net Sales and Operating Profit◼
◼
◼

Sales and earnings are lowest in the 1Q and highest in the 2Q, which includes the year-end/New Year holiday, followed by the 4Q, which includes Obon
holiday and summer vacation, and the 3Q, which includes spring break and Golden Week.
Before the pandemic, there was a loss in the 1Q every year. But sales and earnings became profitable from 1Q FY8/2023 and were even higher in 1Q
FY8/2024.
In the 2Q of FY8/2024, supported by a “normal” year-end/New Year holiday season performance, sales and earnings set new records.

Karaoke Segment Quarterly Net Sales and Operating Profit(Million yen)
18,000Net sales(Million yen)forecast
5,000
Actual profit

Net sales (left scale)Operating profit (right scale)

１Q
２Q
３Q
４Q

16,00014,000

4,000
3,000

12,0002,000

10,000

1,000

8,000

Operating profit
forecast (right scale)

6,000

１Q
２Q
３Q
４Q

4,000
2,000

0
(1,000)(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

FY8/202414

2. 1H FY8/2024 Financial Summary

Number of Locations and Rooms◼ Continued to increase store size and open new stores in prime shopping areas near railway stations→ Improved efficiency of store operations

Number oflocations/rooms

FY8/2023
No. oflocations

1H FY8/2024
No. ofrooms

No. oflocations

ChangeNo. ofrooms

No. oflocationsNo. ofrooms

Near railway stations/prime shopping areas

340

9,411

366

10,202+26+791

Suburban/roadside
locations

274

6,563

274

6,642

-

+79

Total

614

15,974640

16,844

+26

+870

6

212

6

208

-

-4

Total

620

16,186646

17,052+26+866

Number of locations
opened/closed

1Q FY8/2024

Manekineko

One Kara

No. oflocations
openedNo. oflocationsclosed2Q FY8/2024

1H FY8/2024

Near railway stations/prime shopping areas
Suburban/roadside
locations

12

15

27

0

1

1

Total

12

16

28

0

2

2

15

2. 1H FY8/2024 Financial Summary[New Stores in Japan]◼ Of the 28 stores opened in the first half, 11 were in the Kinki region and Nagoya area, 9 in Tokyo Metropolitan area,and 2 in Fukuoka Prefecture.
◼ Continuing to add many stores in the Kinki region and more stores in the Tokyo Metropolitan area. Also targeting areas
rather less cultivated areas.

Strategy for new stores

Continue opening many stores nearstations and shopping districts, mainlyin the Tokyo Metropolitan area

Manekineko share of karaokerooms in Japan*1
Manekineko(As of February
17.2% 2024)
Manekineko(When the EIP
is achieved)
Karaoke other than
30.2%
Manekineko

Rapidly increase the number oflocations in the Kinki region

Open stores in regions where there isenormous potential for growth

Rapidly opening storesin the Kinki region
Opened 11 locations in 1H FY8/2024(Kinki region/Nagoya area)
Opened 2 locations in 1H
FY8/2024 (Fukuoka pref.)*1 Calculated based on the number of rooms as of February 29, 2024 (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

Opened 9 locations in 1H
FY8/2024

Manekineko share of karaoke rooms
by prefecture

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

10% - 30%0% - 10%16

2. 1H FY8/2024 Financial Summary
SETAPAK CENTRAL MALL
Malaysia

Overseas Performance◼ Continued aggressive store openings in the Southeast Asia:
Opened 3 stores in Malaysia, 1 in Thailand and 1 in Indonesia.
◼ Local personnel opened his first Manekineko store in Indonesia →Utilize local human resources(Million yen)

FY8/2023

FY8/2024

2Q
Net sales

Full-year

Silom Edge, Thailand

2Q

OperatingprofitNo. oflocations

Net sales

OperatingprofitNo. oflocations

Net sales

OperatingprofitNo. oflocations

Overseas

296

11

16

779

(2)

17

554

27

22

South
Korea

50

(4)

4

99

(14)

4

65

(5)

4

Malaysia

181

21

9

452

17

10

327

19

13

Thailand

44

(6)

2

185

11

2

133

15

3

Indonesia

21

0

1

43

(16)

1

28

(2)

2

*Sales and operating profit in Malaysia, Thailand and Indonesia are not consolidated; sales and operating profit in all
periods are the sum of monthly figures.

Lippo Mall Puri, Indonesia

172. 1H FY8/2024 Financial Summary

Real Estate Management
Other Businesses18

2. 1H FY8/2024 Financial Summary

Real Estate Management Business◼ Sales decreased because of the sale of “Sport Nagoya”◼ Occupancy was almost 100% at both of the major properties→ AQERU Maebashi, Fleuret Sakuragicho◼ Increase in expenses due to acquisition and opening of new properties for leasing(Million yen)

1H FY8/2020

1H FY8/2021

1H FY8/2022

1H FY8/2023

1H FY8/2024

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

384

-

305

-

536

-

753

-

749

-

Cost of sales

369

96.1%

456

149.5%

460

85.8%

610

81.0%

697

92.9%

Gross profit

15

3.9%

(151)

-

76

14.2%

143

19.0%

52

7.1%

SG&A
expenses

7

1.8%

11

3.6%

7

1.3%

14

1.9%

12

1.6%

Operatingprofit

8

2.1%

(162)

-

68

12.7%

129

17.1%

40

5.4%
19

2. 1H FY8/2024 Financial Summary

Other Businesses◼ Closing of Tokyo Kenko Land Maneki-no-Yu Bath House (former Bath House segment)eliminated revenue from this facility.
◼ Sales of 227 million yen and loss of 19 million yen transferred from Karaoke Segment (193
million yen and 35 million yen in 1H FY8/2023). An improvement in food/beverage store
performance offset expenses for preparations to open many new locations, the launch of a new
business format and other activities.
(Million yen)

1H FY8/2021
Previous classification

1H FY8/2022
Previous classification

1H FY8/2023
Previous classification

1H FY8/2023
New classification

ResultResultResultComp.

Result

Comp.

Comp.

1H FY8/2024

Comp.

ResultComp.

Net sales

536

-

437

-

524

-

717

-

434

-

Cost of sales

570

106.3%

470

107.6%

499

95.2%

710

99.0%

450

103.8%

Gross profit

(34)

-

(32)

-

25

4.8%

7

1.0%

(16)

-

SG&A expenses

23

4.3%

13

3.0%

14

2.7%

23

3.2%

23

5.4%

Operating profit

(58)

-

(46)

-

10

1.9%

(15)

-

(39)

-

*Starting at this FY, several pure restaurant/bar stores which do not provide with Karaoke service and included in Karaoke Segment is included in this segment202. 1H FY8/2024 Financial Summary

Balance Sheet and Cash Flows21

2. 1H FY8/2024 Financial Summary

Balance Sheet(Million yen)August 31,
2023

February 29,
2024

Current assets

12,374

10,187-2,186

Non-current assets

44,63349,000+4,367

Total assets

57,00759,188+2,180Current liabilities

13,964

12,906-1,058Non-current liabilities

17,64817,583-65

Net assets

25,394

28,697+3,303

ChangeNet interest-bearing debt

4,411

6,186

1,755

Equity ratio

44.5%

48.5%

Up 3.9pt

0.17

0.22

UP 0.04

12.2%

14.4%

Up 2.2pt

Net DER (times)
ROE (1H)[百万円]yen)(Million

60,0000.6

50,0000.5

40,0000.4

30,0000.3

20,0000.2

10,0000.1

008/2023
2023年8月

Total
総資産
assets

Net interestネット有利子負債
bearing debt

2/20242024年2月
Net
純資産
assetsNet DERNET
DER（倍）(times)■Non-current assets continue to increase as more stores are opened. Cash decreased due to higher tax
payments as earnings increased. A small increase in the net debt-equity ratio (DER).
■The equity ratio increased despite higher assets because of an increase in equity due to earnings.
■Earnings growth raised the return on equity (ROE) even as Net assets increased during the first half.
22

2. 1H FY8/2024 Financial Summary

Cash Flows(Million yen)
1H FY8/2023

1H FY8/2024

Change

CF from operating activities
営業活動によるキャッシュフロー

CF from investing activities
投資活動によるキャッシュフロー

フリーキャッシュフロー
Free cash flows

Cash flows from operating
activities

4,936

Cash flows from investing
activities(8,970)(6,325)+2,645(Free cash flows)(4,033)(1,206)+2,827

5,118 (Million yen)
+182

Cash flows from financing
activities

2,419(1,062)-3,462

Change in Cash and cash
equivalents(1,457)(2,272)-815

Opening balance ofCash and cash equivalents

6,379

7,854

+1,475

Cash and cash equivalents
at end of period

4,936

5,582

+646

6,000
(Million yen)
[百万円]

4,000
2,000
0

(2,000)(4,000)(6,000)(8,000)(10,000)

1H FY8/2023
2023年2月期

1H FY8/2024
2024年2月期

Operating cash flows increased as higher earnings more than offset an increase in income taxes paid.
Although expenditures for opening many stores continued, net cash used in investing activities was lessthan one year earlier when there was a large real estate aquisition.
After loans repayment, free cash flows kept negative though decreased, resulting in a 2.2 billion yen
decrease in cash and cash equivalents during the first half.
23

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)

Ordinary profit(Ordinary profit to net sales)(Million yen)

FY8/2024
FY8/2024
Initial forecast Revised forecast

Vs. initial forecast
ChangeRatio

61,97662,728

+752

+1.2%

9,004

9,278

+274

+3.0%

(14.5%)(14.8%)

8,910

9,939

+1,029+11.5%(14.4%)(15.8%)

Profit attributable toowners of parent

5,791

6,753

(Profit to net sales)(9.3%)(10.8%)Net income per share
(Yen)

71.03

82.83

+962

+16.6%+11.80+16.6%◼ The fiscal year forecasts have been increased
as first half sales and earnings were higher
than the previous forecast.
◼ Big increases in the forecasts for ordinary profit
and profit attributable to owners of parent
because of higher than planned non-operating
income, including a foreign exchange gain andincome from contract cancelation fees.

[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.
25

3. FY8/2024 Consolidated Forecast

FY8/2024 Forecast by Segment
Forecast by Segment
Item(Million yen)Vs. initial forecast
FY8/2024
FY8/2024
ChangeInitial forecast Revised forecast

61,97659,598
1,565
1,039
(226)
9,004

62,72860,502
1,567
968
(309)
9,278

(Operating profit to net sales)(14.5%)(14.8%)

Karaoke

10,471

10,649(17.6%)(17.6%)

90

127(Operating profit to net sales)(5.8%)(8.1%)

Other

(71)

(63)

(-)

(-)

(1,486)(1,435)Net sales
KaraokeReal Estate Management
Other

Adjustment
Operating profit(Operating profit to net sales)

Real Estate Management(Operating profit to net sales)

Adjustment+752 ◼ In FY8/2024, restaurant operations
without Karaoke services were+904
moved from the Karaoke segment+2
to Other. In FY8/2023, these
operations had sales of 401 million-71
yen and an operating loss of 41-83
million yen. The FY8/2024 forecast+274
is sales of 473 million yen and an+178

operating loss of 52 million yen.

+37
+8 ◼ Segment sales and earnings for+51

FY8/2023 have been restated toreflect the reclassification ofrestaurant operations.
26

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 theeven 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 anniversary of Karaoke business to an ordinary dividend.

Dividend per share/Payout ratio/Dividend yield
FY8/2019

InterimYear-end
Annual

FY8/2020(Yen)
FY8/2021

FY8/2022

FY8/2023

FY8/2024 (forecast)

6.0
6.0
12.0

8.0
4.0
12.0

2.0
2.0
4.0

4.0
4.0
8.0

5.0
7.0
12.0

7.0
7.0
14.0

15.7%

-

-

17.9%

13.8%

16.9%

of the end of eachperiod)

839

458

561

873

1,337

934*2

Dividend yield

1.43%

2.62%

0.71%

0.91%

0.89%

1.49%

Payout ratio
Stock Price (as*1. The Entertainment Infrastructure Plan has the goal of accomplishing the medium-term corporate vision of “entertainment as infrastructure.”*2 As of February 29, 2024

28

4. Shareholder Return Policy

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

Length of shareholding
Under three years

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

4 coupons (4,000 yen)

At least 400

Under three years

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

10 coupons (10,000 yen)

1,000 orUnder three years

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

20 coupons (20,000 yen)

At least 100

more
Shareholder
benefit yield

Total yield
includingshareholder
benefit yield

Number of shares
held

100 shares

Under three years

2.14%

1.33%

1.07%

Three years or more

4.28%

2.67%

2.14%

Number of shares
held

100 shares

Under three years

3.63%

Three years or more

5.77%
4.16%
3.63%
※2024年2月29日の終値934円にて算出

400 shares

400 shares
2.82%

1,000 shares

1,000 shares
2.56%* 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 can be used with other coupons.

29

5. Strategies and Actions

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 existing 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

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

Initiative 4

Welltainment business*3
Contents collaboration business
Utilization of Karaoke customer base for To B marketing research business*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.

31

5. Strategies and Actions

1

Accelerate the EIP: Action Plan
For the Entertainment Infrastructure Plan*1, focus on actions for business growth (rapidly open stores / more
and upgraded PER) and 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 (Achieved 96.5% of FY8/2024 revised forecast)
Sales target
100 billion yen

Sales per room
(More private
entertainment
rooms to give
people morereasons to visit
a karaoke
location)

300,000

FY8/2023

FY8/2025 target
Net sales:
65 billion yen

200,000

Increase rooms/floors
at existing locations
Occupy locations vacated bycompetitors, utilizing existingrooms and equipment

100,000

Karaoke

M&A

Recruiting and training(sound organization for accomplishing the EIP)

Number of
Rooms(Accelerate opening
stores at prime
shopping areas/nearrailway stations)*1 The Entertainment Infrastructure Plan has the goal of accomplishing the medium-term corporate vision of “entertainment as infrastructure.”32

5. Strategies and Actions

1

Accelerate the EIP: Action Plan

Open stores
A rapidly(More rooms)

More and
upgraded
B PER(Increase sales
per room)C

A soundorganizational
structure(Recruiting andtraining)

Explanation of strategic actions

Recent ProgressContinue 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 operate:

28 new store opnings in 1H FY8/2024- 11 stores in Kinki region and Nagoya area
- 9 stores in Tokyo Metropolitan area
- 2 stores in Fukuoka pref.

Increase room utilization and sales per
customer by using advanced digitaltechnologies for new services that givecustomers more forms of entertainment toenjoy.
Recruit more people from other companies
for the skills needed to implement the above
strategic actions.
Increase employees’ skills and motivationand their salaries by completely
reexamining the personnel system.

- Meta-Kara- ONEREC VK- Live viewing

Work Style Innovation Program is installed October 2023
- plan to increase average annual salary of employees
by 25% during 2 years (FY8/2024 and FY8/2025)
through semi-annual performance appraisal

33

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

Enhance efficiency outlet operation/back office operation• Automated shift preparation system• Automated ordering system
Front• Remote store operations support• Invoice and payment system
Improve service to customers• New POS system• Reservation system• Automatic reception:“Remote concierge system”• Self-checkout units
Image of “Remote Concierge”

34

Reservation screen on Application

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 the current size of economies of countries in this region.
Strategies for growth of the karaoke business outside Japan

Businessclimate• 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 tobecome stronger

Koshidaka• 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.
• Examining type of business for faster expansion in the future

Manekineko5

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

FY8/2024

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

35

5. Strategies and Actions

４

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

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)

36

5. Strategies and Actions

４

Create New Sources of Earnings: Contents Collaboration Business
FY8/202X
Contents Collaboration
business becomes thethird core business of
Koshidaka Holdings

FY8/2024
Increase the number of contents and channels
Powerful
Number of contents 65“Japan”
of which also for overseas 4（Korea, Malaysia, Thailand & Indonesia）
Contents
Domestic Sales of Goods, drinks ¥900mm（of which EC ¥100mm）
For Overseas
Cross border EC Sales of Goods ¥200mm（preparing non-EC
Marketdistribution underway）
FY8/2023

With strong outlet network, obtaining powerful contents
Number of content
40
of which also for overseas 2（Korea, Malaysia, Thailand）
Sales of Goods, drinks¥400mm（of which EC 50 ¥mm）

37

5. Strategies and Actions

4

Create New Sources of Earnings: Marketing Reserch Business
Matching B to B corporate customers and “Karaoke Manekineko” customers
at Karaoke Rooms, “Neko no Te” service trial starts
Asset of Koshidaka

650

15 million

Karaoke Outlets
Allover in Japan

Application
users info

Don’t you wanna hear
the “Voice” of Z Generation?
Face to Face

User Interview
at Karaoke Rooms

Utilaze forMarketing Research
Karaoke Rooms forFace to face
Hearing sessions

Reach toOne of the biggest
customer baseMatching Marketers and Customers
at Karaoke Rooms“Neko no Te” literally means “Cats’ hands”. In Japanese it is said thatthose who are extremely busy would say “I require even cats’ hands todeal with this hectic situations!” Karaoke Manekineko, “fortune cats,”
will support those who are very busy in marketing research tasks.

38

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 first half of the fiscal year ending
August 31, 2024. This is not a solicitation to purchase securities issued by
Koshidaka Holdings.
This presentation is based on information as of April 10, 2024. Opinions, forecasts
and other information that is not a fact represent the judgments of management
at the time this presentation was prepared. Koshidaka Holdings provides noguarantee or other assurance that the information in this presentation is 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.