January 11, 2023

Summary of Consolidated Financial Results
for the First Quarter of the Fiscal Year Ending August 31, 2023
(Three Months Ended November 30, 2022)[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:
January 13, 2023
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, 2022 (Sep. 1, 2022 – Nov. 30, 2022)(1) Consolidated results of operations(Percentages are year-on-year changes)
Net sales

Operating profit

Million yen

Million yen%

Million yen%

11,27877.0
534
535
Three months ended Nov. 30, 2022
6,371
(2.7)
(1,130)(196)
Three months ended Nov. 30, 2021
Note: Comprehensive income (million yen)Three months ended Nov. 30, 2022: 442 (-%)
Three months ended Nov. 30, 2021: (228) (-%)
Net income per share Diluted net income per share

-

327
(215)

-

Three months ended Nov. 30, 2022
Three months ended Nov. 30, 2021%

Million yen

Profit attributable toowners of parent

Ordinary profit
%

Yen

Yen

4.01
(2.64)

3.69-(2) Consolidated financial position
Total assets
As of Nov. 30, 2022
As of Aug. 31, 2022
Reference: Shareholders’ equity (million yen)

Net assets

Equity ratio

Million yen

Million yen

48,36747,273As of Nov. 30, 2022:

19,625
19,508
19,61640.6
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

-

4.00

8.00

5.00

-

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

First half
25,138
52.0
3,383
3,377
Full year
53,36140.4
7,430 236.8
7,403
Note: Revisions to the most recently announced earnings forecast: None

%

13.6
38.9

2,026
4,442

7.5
21.9

24.85
54.48

* 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 Nov. 30, 2022:

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 Nov. 30, 2022:

767,335 shares

3) Average number of shares outstanding during the period
Three months ended Nov. 30, 2022:

81,532,694 shares

Three months ended Nov. 30, 2021:

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 3 ofthe 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 First 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

3

2. Quarterly Consolidated Financial Statements and Notes

4(1) Quarterly Consolidated Balance Sheet

4(2) Quarterly Consolidated Statements of Income and Comprehensive Income

6(3) Notes to Quarterly Consolidated Financial Statements

8

Going Concern Assumption

8

Significant Changes in Shareholders’ Equity

8

Changes in Accounting Policies

8

Segment and Other Information

9

Revenue Recognition

9

Material Subsequent Events

91

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

1. Qualitative Information on Quarterly Consolidated Financial Performance(1) Explanation of Results of Operations
In the first quarter of the current fiscal year, consumer sentiment moved up and down along with upturns anddownturns of the pandemic against a backdrop of many long-term sources of concern, such as the Ukraine crisis,
shortages of energy and food in many countries, and the yen’s depreciation.
Business segment performance was as follows.
KaraokeIn the core karaoke business, performance benefited from revenge demand in some sectors as consumer spending
recovered in September and October as the severity of the pandemic declined. However, another wave of
infections began in the middle of November. Before the pandemic, sales would normally be climbing slowly atthis time as the peak year-end demand period approaches. However, the first quarter ended with demand
unchanged from the early November level.
The rapid pace of store openings during the pandemic continued in the first quarter with 19 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 other countries, we restarted opening new stores in Southeast Asia, two in Malaysia and two in Thailand during
the first quarter.
At the end of November 2022, the number of karaoke locations in Japan was 599, 17 more than at the end of theprevious fiscal year. The number of overseas karaoke stores was 15 in four countries, consisting of four in South
Korea, eight in Malaysia, two in Thailand and one in Indonesia, four more than at the end of the previous fiscal
year.
Sales in the Karaoke segment were 10,741 million yen, up 80.6% year on year, and there was a profit of 784
million yen, an increase of 1,734 million yen from the loss one year earlier.
Bath HouseAs in the Karaoke segment, the performance of the Bath House segment was affected by changes in consumer
sentiment as the severity of the pandemic declined but then started increasing again.
Sales in the Bath House segment were 246 million yen, up 17.5% year on year, and the segment loss decreased 36
million yen from one year earlier to 7 million yen.
Real Estate Management
Occupancy was almost 100% at both of the major properties in this segment, the AQERU Maebashi shopping
center and the Fleuret Hanasaki Building in Yokohama.
Sales in the Real Estate Management segment were 345 million yen, up 32.1% year on year, and the segment
profit was 81 million yen, up 188.3% year on year.

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

Results of operations of the Koshidaka Group (KOSHIDAKA HOLDINGS Co., LTD. and its consolidated
subsidiaries) for the first quarter were as follows.
Net sales:

11,278 million yen (up 77.0% year on year)

Operating profit:

534 million yen (an increase of 1,664 million yen from the loss in thesame period of the previous fiscal year)
535 million yen (an increase of 732 million yen from the loss in thesame period of the previous fiscal year)
327 million yen (an increase of 542 million yen from the loss in thesame period of the previous fiscal year)

Ordinary profit:
Profit attributable to owners of parent:(2) Explanation of Financial Position
Assets, liabilities, and net assets
AssetsCurrent assets decreased 1,229 million yen (12.4%) to 8,681 million yen. This was mainly due to a decrease of
1,509 million yen in cash and deposits.
Non-current assets increased 2,324 million yen (6.2%) to 39,686 million yen. This was mainly due to increases of
1,108 million yen in buildings and structures, net, 307 million yen in vehicles, tools, furniture and fixtures, net,
615 million yen in long-term loans receivable and 467 million yen in leasehold and guarantee deposits.
As a result, total assets increased 1,094 million yen (2.3%) to 48,367 million yen.
Liabilities
Current liabilities increased 514 million yen (5.3%) to 10,157 million yen. This was mainly due to increases of
1,500 million yen in short-term borrowings and 685 million yen in accounts payable-other, while there weredecreases of 608 million yen in income taxes payable and 1,134 million yen in in other current liabilities which
include accrued consumption taxes.
Non-current liabilities increased 463 million yen (2.6%) to 18,584 million yen. This was mainly due to increasesof 145 million yen in long-term borrowings and 307 million yen in asset retirement obligations.
As a result, total liabilities increased 977 million yen (3.5%) to 28,742 million yen.
Net assets
Net assets increased 116 million yen (0.6%) to 19,625 million yen. This was mainly due to an increase of 112
million yen in foreign currency translation adjustment.
(3) Explanation of Consolidated Earnings Forecast and Other Forward-looking Statements
There are many sources of uncertainty that are likely to continue for some time, notably the Ukraine crisis,
shortages of energy and food, and the weakness of the yen. The pandemic will probably go through cycles of
upturns and downturns. The seventh wave of infections in Japan has ended without the imposition of restrictions
on activities and people are receiving vaccinations for the new variant. Consequently, we believe that policies andconsumption patterns in Japan will return to normal, including the elimination of res trictions on foreign visitors,
as the country lives with COVID-19.
The speed of the eighth wave of the pandemic was slower than during previous upturns of infections. As a result,
there were no restrictions on the activities of businesses and individuals d uring the year-end selling season. We
are continuing to open a large number of stores near railway stations and in prime shopping areas. For thesereasons, there are no changes at this time in the forecast that was announced on October 12, 2022.
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 anumber of reasons.

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KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First 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)First Quarter of FY8/23(As of Nov. 30, 2022)

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade

6,977,443

5,468,158

525,866

598,715

Merchandise

23,70738,091

Raw materials and supplies

240,144

287,110Other

2,161,669

2,306,863

Allowance for doubtful accounts(17,677)(17,685)

Total current assets

9,911,154

8,681,252

Buildings and structures, net

20,405,196

21,513,675

Vehicles, tools, furniture and fixtures, net

2,196,998

2,504,215

Land

4,490,814

4,461,907

9,010

9,010

27,102,019

28,488,810

Goodwill

4,915

3,888

Software223,418

244,308

Other

210,914

221,736

Total intangible assets

439,248469,933

141,677

194,447

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

10,284

10,434

1,397,800

2,013,546

44,86641,144

Leasehold and guarantee deposits

6,045,882

6,513,145

Deferred tax assets

2,563,537

2,416,892

182,386

170,263

Other
Allowance for doubtful accounts(565,660)(632,407)

Total investments and other assets

9,820,774

10,727,466

37,362,042

39,686,210

47,273,196

48,367,462

Total non-current assets
Total assets

4

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First Quarter of FY8/23(Thousands of yen)First Quarter of FY8/23(As of Nov. 30, 2022)

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

526,507-1,500,000

Current portion of long-term borrowings

2,188,243

2,174,910

Accounts payable-other

1,744,506

2,430,455

Accrued expenses

Short-term borrowings

1,377,403

1,453,419

Income taxes payable

736,756

128,224

Provision for bonuses

229,570

117,995

Deposits received

56,29793,011Other

2,867,573

1,733,413

Total current liabilities

9,643,551

10,157,936

4,000,000

4,000,000

8,744,700

8,890,140

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

233,336

245,919

4,225,294

4,532,672

917,666

915,511

18,120,998

18,584,243

27,764,549

28,742,180

Share capital

2,070,257

2,070,257

Capital surplus

3,302,786

3,302,786

Retained earnings

14,423,589

14,424,523

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

Total shareholders’ equity

19,690,970

19,691,871

24,18927,607

Foreign currency translation adjustment(215,134)(102,819)

Total accumulated other comprehensive income(190,945)(75,211)

8,622

8,622

19,508,647

19,625,282

47,273,196

48,367,462

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

5

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First Quarter of FY8/23(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 FY8/22
First three months of FY8/23(Sep. 1, 2021 – Nov. 30, 2021) (Sep. 1, 2022 – Nov. 30, 2022)
Net sales

6,371,902

11,278,683

Cost of sales

6,563,769

9,427,090

Gross profit (loss)(191,866)

1,851,592

938,846

1,317,417(1,130,713)

534,175

Selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest and dividend income

4,031

8,069

Foreign exchange gains

11,47428,336

Subsidy income

935,650-

Other

46,081

33,928

Total non-operating income

997,238

70,335Interest expenses

12,453

9,130

Provision of allowance for doubtful accounts

46,99657,186

Other

3,291

2,220

Total non-operating expenses

62,74068,537(196,215)

535,972

Gain on sale of non-current assets

84,210296

Total extraordinary income

84,210296

Loss on retirement of non-current assets

8,581

12,406

Impairment losses

53,674-Non-operating expenses

Ordinary profit (loss)
Extraordinary income

Extraordinary losses

Total extraordinary losses

62,255

12,406

Profit (loss) before income taxes(174,260)

523,863

39,45939,078

Income taxes-deferred

1,478

157,719

Total income taxes

40,937

196,797

Profit (loss)(215,198)

327,065

Profit (loss) attributable to owners of parent(215,198)

327,065

Income taxes-current

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

Quarterly Consolidated Statement of Comprehensive Income(For the Three-month Period)(Thousands of yen)First three months of FY8/22
First three months of FY8/23(Sep. 1, 2021 – Nov. 30, 2021) (Sep. 1, 2022 – Nov. 30, 2022)
Profit (loss)(215,198)

327,065

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

(833)

3,418

(12,858)

112,315(13,692)

115,733(228,890)

442,798(228,890)

442,798

Comprehensive income attributable toComprehensive income attributable to owners of parent

7

KOSHIDAKA HOLDINGS Co., LTD. (2157) Financial Results for the First Quarter of FY8/23(3) 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 (ASBJ Guidance No. 31, June 17, 2021) from the beginning of the first quarter of the current fiscal
year, and has applied the new accounting policies set forth by the Implementation Guidance on AccountingStandard 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 noeffect of the application of this guidance on the quarterly consolidated financial statements.

8

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

Segment and Other Information
Segment Information
I. First three months of FY8/22 (Sep. 1, 2021 – Nov. 30, 2021)
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
5,948,521
210,078555
6,159,154
6,159,154
with customers
Other revenue
212,747
212,747
212,747
External sales
5,948,521
210,078
213,3036,371,902
6,371,902
Inter-segment sales
48,36848,368(48,368)
and transfers
Total
5,948,521
210,078
261,671
6,420,271(48,368)
6,371,902
Segment profit (loss)(950,542)(43,446)
28,108(965,880)(164,833)(1,130,713)
Notes: 1. The -164,833 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 loss shown on the quarterly consolidated statementof 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 FY8/23 (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
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
10,741,871
246,858752
10,989,482
10,989,482
with customers
Other revenue
289,200
289,200
289,200
External sales
10,741,871
246,858
289,953
11,278,683
11,278,683
Inter-segment sales
55,686
55,686(55,686)
and transfers
Total
10,741,871
246,858
345,640
11,334,370(55,686)
11,278,683
Segment profit (loss)
784,345(7,249)81,042
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.
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.

9