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☑ 第一 興 商 First Quarter of Fiscal Year Ended March 2027 Supplementary Materials for Financial Results Aug 6 , 2026
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DAIICHIKOSHO CO., LTD. 2 Contents Contents 01 Results Summary P3 02 Outlook for FY2026 P13 03 Appendix P17
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DAIICHIKOSHO CO., LTD. 3 01 Results Summary 02 Outlook for FY2026 03 Appendix
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DAIICHIKOSHO CO., LTD. 4 FY2026 1Q Financial Results Summary Although the sales boost from the new product (LIVE DAM WAO!) launched in Apr of the previous fiscal year has tapered off, main segments showed solid performance slightly exceeding expectations 01 Results Summary • Net sales increased 1.5% year-on-year (record high), and operating profit increased 17.6%, with both sales and profit slightly exceeding expectations Commercial Karaoke Business: No. of DAM units in operation remained stable, with a slight increase from the end of the previous fiscal year Despite revenue decline due to decreased product sales, profit increased due to higher gross profit from recurring revenue and reduced SG&A expenses including promotional costs Karaoke and Restaurant Business: Same-store sales year-on-year (Karaoke Cabin) +2%, (Restaurants) +3% Revenue increased; profit decreased slightly due to higher store opening costs, etc. Parking Business: Number of facilities at period-end increased steadily to 4.5 thousand facilities with 52 thousand parking spaces • Net income decreased 10.9% year-on-year due to the absence of gain on sale of fixed assets recorded in the previous period • Reflecting the higher-than-expected profit in 1Q, the FY2026 (1H/full year) earnings forecast has been revised
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DAIICHIKOSHO CO., LTD. 5 〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇 〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇〇 PERFORMANCE HIGHLIGHTS Progress slightly ahead of forecast in sales and profit items Net sales reached a record high for a first quarter 01 Results Summary (Unit: million yen) FY2025 FY2026 Previous 1Q Actual Current 1Q Actual Full-Year Forecast (Initial Forecast) YoY (%) Progress (%) Net sales 40,553 41,157 168,700 1.5 24.4 Gross Profit 14,160 14,750 58,100 4.2 25.4 Selling, general and administrative expenses 9,914 9,759 39,600 △1.6 24.6 Income from Operations 4,245 4,991 18,500 17.6 27.0 Current Profit 4,571 5,129 18,900 12.2 27.1 Profit attributable to owners of parent 3,520 3,137 12,200 △10.9 25.7
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DAIICHIKOSHO CO., LTD. 6 PERFORMANCE HIGHLIGHTS 01 Results Summary 40.5 Commercial Karaoke Business Other BusinessKaraoke Cabin and Restaurant Business Music Software Business FY2025 Previous 1Q Actual FY2026 Current 1Q Actual (Billions of yen) • Same-store sales increase +0.4 (Same-store sales year-on-year: Karaoke stores +0.2%, Restaurant stores +0.3%) • Sales increase from store openings, etc. +0.4 • Sales increase from M&A acquired stores +0.2 • Parking business sales increase +0.4 • Other sales increase (real estate, etc.) +0.1 • Decrease in product sales due to the tapering off of new product effect from the previous year △1.8 • Increase in recurring revenue due to higher volume and unit price +0.5 0.11.1△1.3 0.6 41.1
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DAIICHIKOSHO CO., LTD. 7 Quarterly Sales Trends 01 Results Summary (Unit: million yen) 35,381 35,875 38,607 36,88236,886 37,434 40,117 38,580 40,553 39,723 42,139 40,534 41,157 0 10,000 20,000 30,000 40,000 50,000 1Q 2Q 3Q 4Q FY2023 FY2024 FY2025 FY2026
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DAIICHIKOSHO CO., LTD. 8 Variance Analysis on Operating Profit 01 Results Summary 4.2 4.9 Other BusinessMusic Software Business FY2025 1Q Results of Previous Fiscal Year FY2026 1Q Results of Current Fiscal Year (Billions of yen) • Increase in gross profit from Parking business +0.2 • Increase in gross profit from Other +0.1 • Increase in SG&A expenses △0.1 • Sales decrease △1.3 • Elimination of operating asset acquisition costs from previous fiscal year, Decrease in cost of sales due to improved cost ratio, etc. +1.4 • Decrease in SG&A expenses including promotional costs, etc. +0.3 • Sales increase +1.1 • Increase in cost of sales △1.0 Of which: Increase in personnel expenses △0.4, Increase in food ingredient costs △0.2 Increase in depreciation, equipment costs, etc. due to new store openings △0.1 Increase in rent expenses △0.1 • Increase in SG&A expenses including cashless payment fees, etc. △0.1 0.0 0.4 △0.0 4 Corporate overhead 0.00.2 Commercial Karaoke Business Karaoke Cabin and Restaurant Business
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DAIICHIKOSHO CO., LTD. 9 Quarterly Operating Profit Trends 01 Results Summary (Unit: million yen) 4,757 4,620 5,721 3,503 4,647 4,349 5,324 3,625 4,245 4,184 5,339 4,146 4,991 0 1,000 2,000 3,000 4,000 5,000 1Q 2Q 3Q 4Q FY2023 FY2024 FY2025 FY2026
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DAIICHIKOSHO CO., LTD. 10 Business Environment (Commercial Karaoke) 01 Results Summary • Remained solid, particularly in the growing seniors' market; No. of DAM units in operation at the end of 1Q slightly increased year-on-year • Further expanded "original artist videos" for the top model LIVE DAM WAO! (launched in Apr 2025) • Strengthened tie-ups with TV programs and events → Stimulated karaoke demand and promoted new features/content • Nightlife market/Karaoke box market: Effective equipment replacement → Increased revenue per DAM unit • Seniors' market : Collaborative research with universities and other institutions to increase awareness of the link between singing and health Business Environment 223 thousand units +0.4% 222 thousand units End of Jun 2025 End of Jun 2026 KPIs by Business Segment No. of DAM units in operation Overall shift toward seniors' market End of Jun 2025 Launch of DAM for seniors 122 thousand units +4.8% 116 thousand units No. of equipment rentals End of Jun 2026 30 +2.6% 222 thousand units thou sand units 29 222 thousand units thou sand units
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DAIICHIKOSHO CO., LTD. 11 Business Environment (Karaoke Cabin and Restaurant Business) 01 Results Summary • Despite the impact of typhoons in Jun, customer traffic remained solid, slightly exceeding expectations → Same-store sales: Karaoke stores +2%, Restaurant stores +3% • Karaoke stores: Improved customer satisfaction through enhanced equipment, sound quality, and aesthetics; Developed collaboration projects Initiatives leveraging prime locations, such as dart bar additions and luggage storage services • Restaurant stores: Food/amusement complex stores such as "MARUNOUCHI BASE" contributed to revenue Business Environment Same-Store Sales Trends for Karaoke Cabin and Restaurant Stores (Year-on-Year) 95% 100% 105% 110% 7月 8月 9月 10月 11月 12月 1月 2月 3月 4月 5月 6月 Karaoke Cabin Restaurant FY2025 FY2026 July Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Karaoke Cabin 104% 109% 102% 106% 102% 106% 105% 100% 101% 103% 105% 99% Restaurant 102% 103% 98% 101% 97% 105% 103% 101% 103% 104% 103% 102% Stores opened Stores closed End of 1Q Number of stores Karaoke Cabin 3 3 521 Restaurant 6 2 171
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DAIICHIKOSHO CO., LTD. 12 (Unit: million yen) FY2025 FY2026 End of previous period End of current 1Q vs. End of previous period (%) Comments Current Assets 77,209 70,861 △8.2% Decrease in cash and deposits Fixed Assets 143,235 145,099 1.3% Increase in business assets and investment securities Total assets 220,445 215,961 △2.0% Current Liabilities 27,351 23,398 △14.5% Decrease in other payables and income taxes payable Non-current liabilities 67,744 67,737 0.0% Total Liabilities 95,096 91,136 △4.2% Shareholders' Equity 122,263 121,369 △0.7% Total accumulated other comprehensive income 1,376 1,722 25.1% Total Net Assets 125,349 124,824 △0.4% Total liabilities and net assets 220,445 215,961 △2.0% CONSOLIDATED BALANCE SHEETS Cash and deposits decreased due to year-end dividend payments and corporate tax payments Equity ratio increased 0.9 percentage points from the end of the previous period 01 Results Summary
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DAIICHIKOSHO CO., LTD. 13 01 Results Summary 02 Outlook for FY2026 03 Appendix
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DAIICHIKOSHO CO., LTD. 14 Revision of FY2026 Results Outlook Reflecting 1Q results slightly exceeding expectations, the forecast has been revised upward 02 Outlook for FY2026 (Unit: million yen) FY2026 1H Initial Forecast Revised Forecast Variance (%) Net sales 82,800 83,100 0.4% Operating profit 8,800 9,600 9.1% Operating profit margin (%) 10.6% 11.6% +1.0pt Current Profit 9,000 9,800 8.9% Attributable to owners of parent Net Income 5,800 6,200 6.9% FY2026 Full Year Initial Forecast Revised Forecast Variance (%) 168,700 169,000 0.2% 18,500 19,300 4.3% 110% 114% +0.4pt 18,900 19,700 4.2% 12,200 12,600 3.3%
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DAIICHIKOSHO CO., LTD. 15 FY2026 Forecasts by Business Segments 02 Outlook for FY2026 Karaoke Cabin and Restaurant Business Music Software Business 169,000 million yen 65,750 million yen +0.7% 12,700 million yen +6.5% Net Sales by Business Segments Operating Income by Segment 5,500 million yen 300 million yen Net Sales by Business Segments Operating Income by Segment ＋0.7% +135.1% 74,750 million yen +5.3% 6,700 million yen +1.0% Net Sales by Business Segments Operating Income by Segment 23,000 million yen 3,000million yen Net Sales by Business Segments Operating Income by Segment +8.4% +6.7% Other businesses ⚫ Parking Business ⚫ Real estate rental ⚫ BGM Broadcasting Business, etc. Net sales 19,300 million yen Operating profit Commercial Karaoke Business ⚫ For night business market ⚫ For seniors’ market ⚫ Karaoke Box Market *After revision dated Aug 6, 2026
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DAIICHIKOSHO CO., LTD. 16 FY2026 Key Initiatives by Segment 02 Outlook for FY2026 key initiatives ⚫ Parking Business ⚫ Promote development of new facilities including M&A to achieve further business growth ⚫ Improve profitability through improvement and reorganization of unprofitable facilities ⚫ Entire company ⚫ By consolidating the headquarters, which was previously dispersed across three locations, into one location, we aim to e n h a n c e i n t e r - d e p a r t m e n t a l communication, improve productivity, and create new innovations ⚫ Build a solid profit model by discovering new artists and creating hit songs, while also focusing on the music publishing business Karaoke cabins ⚫ As manufacturer-operated stores, enhance both facilities and services to improve customer satisfaction ⚫ Att ra ct c asual c usto me rs t hro ugh collaboration projects with artists, anime, etc. Restaurants ⚫ Focus on developing new brands that meet customer needs ⚫ Develop a wide range of customer segments including private dining as our main format, as well as amusement options such as karaoke and darts rest of market ⚫ Create "new singing venues" through collaboration with other industries such as supermarkets Common ⚫ Further promote prime location strategy and strengthen profitability by opening stores in densely populated areas Night business market ⚫ A i m f o r f u r t h e r market share growth in central areas ⚫ Promote replacement from older models Karaoke Box Market Seniors’ market ⚫ Expand sales of LIVE DAM WAO! ⚫ Promote replacement from older models ⚫ Contribute to extending healthy life expectancy and reducing workload for nur si ng c ar e fa cilit y sta ff by expanding sales of the elder market- dedicated model “FREE DAM LIFE" and promoting its new features ⚫ Increase the number of units in operation as a growth market ⚫ Promote the features and content of LIVE DAM WAO! to improve revenue per DAM unit, expand the base of karaoke users, and increase singing frequency ⚫ Building a stable earnings base Common Commercial Karaoke Business Karaoke Cabin and Restaurant Business Music Software Business Other businesses *No significant changes from the beginning of the fiscal year
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DAIICHIKOSHO CO., LTD. 17 01 Results Summary 02 Outlook for FY2026 03 Appendix
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DAIICHIKOSHO CO., LTD. 18 Topics 03 Appendix "Oshi-Came Live" is new content that allows users to freely switch between footage that continuously follows a specific member (“oshi”) and footage showing the entire stage while watching artists' live video playing in the background during karaoke singing. As if you are switching the cameras yourself, you can follow only the member you want to watch from the beginning to the end of the song, fully enjoying your oshi's performance while thoroughly enjoying karaoke. LIVE DAM WAO! new content "Oshi-Came Live" makes supporting your “oshi” even more enjoyable! Furthermore, in the future, we plan to expand to dance vocal groups, rock bands, and other artists,aiming for a wide lineup that meets more diverse needs by considering the expansion of songs from various artists. To continue meeting user needs, our company will continue to collaborate on attractive works and with artists through collaborations with attractive works and artists, we will provide new karaoke experiences. 1st Phase 「FRUITS ZIPPER」 2nd Phase 「CANDY TUNE」
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DAIICHIKOSHO CO., LTD. 19 Various collaboration projects are underway at BIG ECHO! Topics 03 Appendix At our karaoke locations, including BIG ECHO, we are developing various collaboration projects in partnership with artists and content such as anime and games, including collaboration rooms, collaboration drinks, and designated song singing campaigns. We will continue to create attractive services that are sensitive to customer needs and support fan interactions and community revitalization through karaoke experiences dedicated to "oshi." SUPER EIGHT Collaboration Room MONAKI Collaboration Room Sada Masashi Song Stamp Rally
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The information contained in this presentation is based on information available and judgments made as of the date of its rel ease. The Company assumes no obligation to update or revise the contents of this presentation in the event of future developments or changes in circumstances.This presentation also contains forward- looking statements that involve significant uncertainties. Actual results may differ materially from those expressed or implied by such statements due to various factors and changes in the business environment and other circumstances.