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

Results of Operations
for the First Quarter of the Fiscal YearEnding August 2024 (1Q FY8/2024)
January 10, 2024

Results of Operations for 1Q FY8/2024

Agenda1 Executive Summary

2 1Q FY8/2024 Financial Summary2

1. Executive Summary

1. Executive Summary

1Q FY8/2024 Overview
・Record-high first quarter sales (*after the spin-off of Curves)
・Continuing to open stores in the Kinki region including the first in the city of Kyoto
・Speeding up growth outside Japan (2 locations in Malaysia, 1 in Thailand and 1 in Indonesia)

Accelerate EIP (Entertainment Infrastructure Plan*1)/Faster growth in Southeast Asia
• Operate karaoke Manekineko throughout Japan
Continuing to add stores rapidly in the Kinki region

Entertainment asInfrastructureContinued to open many new stores (the Tokyo Metropolitan area/Nagoyaarea/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)• An outstanding entertainment experience for people worldwide

Resumed new store openings in Southeast Asia
Collaboration with Japanese animation contents at overseas Manekineko outlets*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. 1Q FY8/2024 Financial Summary

2. 1Q FY8/2024 Financial Summary

1Q FY8/2024 Consolidated Results of Operations◼ First quarter sales and operating profit were mostly consistent with the plan
◼ Record-high first quarter sales and earnings, surpassing the record performance one year
earlier (excluding Curves business portion before the spin-off)(Million yen)
YoY change

Item

1Q FY8/2023

1Q FY8/2024

11,278Gross profit

Vs. 1Q forecast
Achievement
Forecast
ratio

AmountRatio

13,182+1,904+16.9%

12,827102.8%

1,851

2,151+299+16.2%--

SG&A expenses

1,317

1,577+260+19.8%--

Operating profit

534

573

+39+7.3%(Operating profit to net sales)

4.7%

4.3%

578

99.2%

Ordinary profit

535

1,021+485+90.5%(Ordinary profit to net sales)

4.8%

7.7%

554

184.3%

Profit attributable to owners ofparent

327

787

+460

+140.8%

2.9%

6.0%

360

218.6%(Profit to net sales)

Net income per share (Yen)

4.01

9.66

+5.65

+140.8%4.42

218.6%Net sales62. 1Q FY8/2024 Financial Summary

Consolidated Results of Operations by Segment (YoY Change)◼

◼
◼

Karaoke: Double-digit sales and earnings growth backed by continuation of opening many stores. Existing store sales up 19.3%
as the number of customers and sales per customer increased. Profit ratios increased despite expenditures for new stores andupgraded equipment at existing stores to prepare for the year-end peak demand period and expenses due to higher salaries(Workstyle Innovation Plan).
Real Estate Management: Sales down because of the sale of Sport Nagoya and higher expenses for a new property.
Other: Sales down because of the closing of Tokyo Kenko Land Maneki-no-Yu Bath House (former Bath House Segment). Sales of
104 million yen and loss of 24 million yen transferred from the Karaoke segment.

(Million yen)

YoY change
ItemVs. 1Q forecast1Q FY8/2023

1Q FY8/2024

11,27813,182+1,904+16.9%

12,827102.8%

Adjustment

10,650
345
338
(55)

12,707
332
208
(66)

+2,056
-12
-129
-10

+19.3%-3.7%-38.2%-12,294
358
231
(56)

103.4%
93.0%
90.4%
-

Operating profit

534

573

+39

+7.3%

578

99.2%

801
(7.5%)
81(23.5%)
(23)
(-)
(323)

1,000(7.9%)(3)((0.9)%)
(60)
(-)
(363)

+199

+25.0%

101.0%

-84

--36-

-39-

991
(8.0%)
22(6.1%)
(49)
(-)
(386)

Net sales
KaraokeReal Estate Management
OtherKaraoke(Operating profit to net sales)
Real Estate Management(Operating profit to net sales)
Other(Operating profit to net sales)
Adjustment

AmountRatio

ForecastAchievement
ratio

-7

2. 1Q FY8/2024 Financial Summary

YoY Change in Operating Profit(Million yen)

Increase

Decrease

Total(Million yen)◼

Major increase in sales✓ New stores:+1,277✓ Existing stores:+1,117✓ Real Estate/Other:-142✓ Closed stores/Adjustment: -348◼

Major increase in cost of sales✓ Personnel:+400 (+12.7%)✓ Rents:+356 (+17.0%)✓ Cost of merchandise: +309 (+34.7%)✓ Distribution fees:+128 (+33.5%)✓ Depreciation:+102 (+12.2%)✓ Fees and commissions: +62 (+30.4%)◼

Major increase in SG&A expenses✓ Personnel:+100 (+25.8%)✓ Advertising costs:+72 (+81.2%)✓ Reception and communication fee:+39 (+21 times)✓ Recruiting advertisement:+37 (+50.9%)✓ Opening expenses:-28 (-12.2%)+8

2. 1Q FY8/2024 Financial Summary(*Reference) Changes in First Quarter Net Sales and Operating Profit◼ Record-high first quarter sales and operating profit◼ Operating losses in prior years even before the pandemic due to the seasonality of the karaoke business,but the first quarter was profitable in the past two fiscal years

Net sales(Million yen)
14,00013,183

During the pandemic
12,00011,279(*including current businesses after the
spin-off of Curves)

During the pandemic
600
During the pandemic
400

534

573

(*including current businesses after thespin-off of Curves）

200

10,000

8,036
8,000

Operating profit(Million yen)
800

8,275

0

7,289
6,546

6,372

-200
-400

6,000

-600
4,000

-134
-333
-486

-800
-1,0002,000-1,2000
1Q1Q1Q
1Q
1Q
1Q
1Q
FY8/2018 FY8/2019 FY8/2020 FY8/2021 FY8/2022 FY8/2023 FY8/2024-1,400-983-1,131
1Q
1Q
1Q
1Q
1Q
1Q
1Q
FY8/2018 FY8/2019 FY8/2020 FY8/2021 FY8/2022 FY8/2023 FY8/2024

9

2. 1Q FY8/2024 Financial Summary

Karaoke Business10

2. 1Q FY8/2024 Financial Summary

Karaoke Business◼ Higher existing store sales, sales at new stores as store openings continue, morecustomers, and a higher gross profit margin.
◼ Renewed menu and revised room rates → Average sales per customer increased.
(Million yen)
1Q FY8/2021
Previous classification

1Q FY8/2022
Previous classification

1Q FY8/2023
Previous classification

1Q FY8/2023
New classification

1Q FY8/2024

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

6,133

-

5,948

-

10,741-

10,650-12,707-

Cost of sales

6,767

100.6%

6,134

103.1%

8,978

83.6%

8,873

83.3%

10,513

82.7%

Gross profit(33)(0.5)%(185)(3.1)%

1,764

16.4%

1,776

16.7%

2,193

17.3%

SG&A
expenses

704

11.5%

764

12.8%

979

9.1%

975

9.2%

1,192

9.4%(950) (16.0)%

784

7.3%

801

7.5%

1,000

7.9%

Operatingprofit(737) (12.0)%

112. 1Q FY8/2024 Financial Summary

Existing Store Sales◼
◼
◼

Existing store sales increased 10.9% YoY in the first quarter (existing stores defined month by month basis).
Sales of stores in prime shopping areas/near railway stations were up 8.8% YoY. Revenge consumption since early in FY8/2023 continued.
Sales of roadside stores in suburban locations were up 15.5% YoY. Revenge consumption reached areas outside major metropolitan areas beginning inthe second half of FY8/2023.
130%【Existing Stores compared on same month in 2019】126.7%

124.3%

125%

122.7%

120%

116.6%

115%
107.5%
110%100%

112.9%
110.6%
106.5%

99.2%
100.5%

85%

110.6%

97.6%

112.9%
112.7%
112.1%
115.9%
107.3%

96.9%

90.1%
83.9%

2210

2211
Total

2212

2301

2302

107.8%

109.2%

Existing store on
last year（%）

Sept.

Oct.

Nov.

Near Station

112.2

102.8

111.9

Roadside

118.9

108.7

119.5

114.3

104.6

114.2

Total

80%
2209

114.7%

98.1%

92.9%

8thwave

120.3%
121.4%

118.0%

102.1%

90.7%
91.9%

108.4%

99.6% 103.3%

95%
90%

110.8%

121.4%

120.0%

119.0%

115.1%

104.0%

105%

122.4%

122.4%

118.5%

128.6%

126.9%

2303

2304

2305

Near Station/Prime Shopping Area

2306

2307

2308

2309

Suburban/Roadside

2310

2311
12

2. 1Q FY8/2024 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
Normally, sales per customer decrease between February and early May (Golden Week), but this year remained steady and the Sales weremore than 10% above 2019, with a peak in June.
Revenge consumption was widespread, and the number of customers exceeded that of 2019 in May and July 2023 onwards after theapplication of Category V.
125%【Existing Stores compared on same month in 2019】119.0%
117.7%

120%
115.1%

115.9%

113.9%

115%

121.4%

120.0%

112.9%

114.7%
113.3%

111.9%
108.4%

115.5%
114.8%
109.9%
114.6%
112.9%
110%107.7%
107.1%
110.8%
110.8%
110.6%
104.7%
104.6%
104.3%
108.4%
101.6%
105%
101.9% 101.1%
103.0%
106.9%
103.3%
104.4%
104.0%
100%
100.5%
99.2%
on Last Year(%) Sept. Oct.
100.0%
92.9%
98.9%
97.6%
95%
97.3%
99.1%
114.3 104.6
95.9% Sales
95.9%
8thwave

90%

89.3%

85%
2209

2210

2211

2212
Sales

2301

2302

2303

2304

Number of Customers

2305

2306

Nov.

114.2

Sales/Customer

108.9

105.3

107.2

# Customer

105.0

99.4

106.5

2307

2308

Sales per Customer

2309

2310

2311
132. 1Q 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.
◼ Prior to the pandemic, there was a loss in the 1Q, but 1Q FY8/2023 and 1Q FY8/2024 were profitable and earnings in FY8/2024 increased yoy◼ 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 tonormal.

Karaoke Segment Quarterly Net Sales and Operating Profit(Million yen)

Net sales (left axis)
Operating profit (right axis)
１Q
２Q
３Q
４Q

18,00016,00014,000

Net sales (Million yen)forecast
5,000
Actual Earing

4,000
3,000

12,0002,000

10,000

1,000

8,000

0
Earning forecast（right axis）
１Q
２Q
３Q
４Q

6,000

4,0002,000(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. 1Q 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
Manekineko

No. ofrooms

No. oflocations

ChangeNo. ofrooms

No. oflocations

No. ofrooms

340

9,411

352

9,795

+12+384

Suburban/roadside
locations

274

6,563

274

6,589

-+26Total

614

15,974626

16,384+12+410

62126207--5620

16,186632

16,591+12+405Total

Number of locations
opened/closed

No. of locations
closedNo. oflocations

1Q FY8/2024

Near railway stations/prime shopping areas

One Kara

No. of locations
openedFY8/2023

1Q FY8/2023

2Q FY8/2023

3Q FY8/2023

4Q FY8/2023

1Q FY8/2024

Near railway stations/prime shopping areas
Suburban/roadside
locations

13913101260020Total

1991312122

3

50015

2. 1Q FY8/2024 Financial Summary

Overseas Performance◼ Continued rapid store openings in the Southeast Asia: Opened 2 storesin Malaysia, 1 in Thailand and 1 in Indonesia.
◼ Losses in all countries because of expenses for new stores andseasonal factors◼ Local personnel opened his first Manekineko store in Indonesia →Utilize local human resources(Million yen)

Net sales

FY8/2023

FY8/2024

Full-year

1Q

OperatingprofitNo. oflocations

Net sales

OperatingprofitNo. oflocations

Overseas779(2)17232(26)

21 (+4)South Korea

99(14)

421(2)

4 (-)

Malaysia452

1710143(10)12 (+2)Thailand

185

11256(1)

3 (+1)

Indonesia

43(16)

110(12)

2 (+1)* Sales and operating profit in Malaysia, Thailand and Indonesia are not consolidated; sales andearnings in July and August or in September, October and November for each country have been
multiplied by six or four, for conversion to a 12-month basis.

Snapshot of a store inMalaysia

Snapshot of a store inThailand16

2. 1Q FY8/2024 Financial Summary

Real EstateManagement/OtherBusinesses172. 1Q 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 of properties for opening new stores(Million yen)

1Q FY8/2020

1Q FY8/2021

1Q FY8/2022

1Q FY8/2023

1Q FY8/2024

ResultComp.

ResultComp.

ResultComp.

ResultComp.

ResultComp.

Net sales

133

-

145-

261-

345-

332

-

Cost of sales

217

163.4%

178

122.4%

231

88.3%

258

74.7%

329

99.0%

Gross profit(84)(63.4)%(32)(22.4)%

30

11.7%

87

25.3%

31.0%

SG&Aexpenses

53.9%

32.1%

20.9%

61.8%

61.9%

Operatingprofit(89)(67.3)%(35)(24.4)%

28

10.7%

81

23.4%

(3)

(0.9)%
182. 1Q FY8/2024 Financial Summary

Other Businesses◼ Closing of Tokyo Kenko Land Maneki-no-Yu Bath House (former Bath House segment) eliminatedrevenue from this facility.
◼ Sales of 104 million yen and loss of 24 million yen transferred from Karaoke Segment. 91 million
yen and 16 million yen in 1Q 2023.
◼ Revenue from food/beverage stores transferred from the Karaoke segment improved (smallerloss), but the segment operating loss increased because preparations to open many new locations
and expenses for launching a new business format raised SG&A expenses.
(Million yen)
1Q FY8/2021
Previous classification

1Q FY8/2022
Previous classification

1Q FY8/2023
Previous classification

1Q FY8/2023
New classification

ResultComp.

ResultResultComp.

ResultComp.

ResultComp.

Net sales

267-210-

246-

338-

208

-

Cost of sales292

109.2%

246

117.5%

246

99.8%

350

103.7%

254

121.9%

Gross profit(24)(9.2)%(36)(17.5)%

00.2%

(12)

(3.7)%(45) (21.9)%

SG&Aexpenses

114.5%

63.2%

73.2%

113.4%

Operatingprofit(36)(13.7)%(43)(20.7)%(7)(2.9)%(23)(7.1)%Comp.

1Q FY8/2024

147.1%(60) (29.0)%
19

2. 1Q FY8/2024 Financial Summary

Balance Sheet202. 1Q FY8/2024 Financial Summary

Balance Sheet◼ Cash and deposits (current assets) were reduced during the first quarter for increasing property, plant andequipment, and investments and other assets for new stores, and income tax payments (current liabilities).
(Million yen)August 31, 2023

Current assets
Non-current assets
Property, plant andequipment
Intangible assets
Investments and other assets
Total assets
Current liabilities
Current portion of long-termborrowings
Non-current liabilities
Convertible-bond-type bonds
with share acquisition rights
Long-term borrowings
Total liabilities
Shareholders' equity
Net assets
Total liabilities and net assets

November 30, 2023

Change12,374
44,6338,243
46,300-4,131+1,66632,032

33,234+1,202510
12,09057,007
13,964540
12,52554,543
11,227+29+435-2,464-2,736

1,911

1,993

+82

17,64817,749+100

4,0004,000-

6,937
31,61325,72225,39457,007

6,871
28,97725,93925,56654,543-65-2,636+216+172-2,46421

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 quarter in fiscal year ending
August 31, 2024. This is not a solicitation to purchase securities issued byKoshidaka Holdings.
This presentation is based on information as of January 10th, 2024. 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.